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Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. These costs were consumed
Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. 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 would be allocated to the Deliveries activity? Multiple Choice $244,000 $254,000 $224,000 $234,000
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