Question
Assume a companys activity-based costing system includes three activities. The following information is available with respect to those activities: Activity Cost Pool Estimated Overhead Cost
Assume a companys activity-based costing system includes three activities. The following information is available with respect to those activities:
| Activity Cost Pool | Estimated Overhead Cost | Expected Activity | |||
| Travel | $ | 136,000 | 100,000 | miles driven | |
| Deliveries | $ | 110,000 | 2,200 | customer deliveries | |
| Customer service | $ | 220,000 | 10,000 | phone calls | |
What is the activity rate for the Travel activity?
Multiple Choice
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$1.36 per mile drivenCorrect
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$13.60 per mile driven
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$0.14 per mile driven
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$1.14 per mile driven
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From Zero To Zen Secret Keys To Nurturing Your Numbers And Finding Financial Flow
Authors: Liz Lajoie
1st Edition
1683507045, 978-1683507048
