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Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $125,000; and Customer service salaries, $185,000. These costs were consumed
Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $125,000; and Customer service salaries, $185,000. These costs were consumed by four activities as follows: Customer Travel Deliveries Service Other Total Vehicle operating expenses 45% 40% 10% 5% 100% Vehicle depreciation 40% 50% 0% 10% 100% Customer service salaries 20% 30% 35% 15% 100% How much total cost (including all three expenses) would be allocated to the Travel activity? Multiple Choice $240,250 How much total cost (including all three expenses) would be allocated to the Travel activity? Multiple Choice $240,250 $210,250 $222,000 $192.000
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