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Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $205,000. These costs were consumed
Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $205,000. These costs were consumed by four activities as follows:
Travel | Deliveries | Customer 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?
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