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Assume a companys activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Travel $ 2 per mile driven

Assume a companys activity-based costing system includes three activities with the following activity rates:

Activity Cost Pool Activity Rate
Travel $ 2 per mile driven
Deliveries $ 50 per delivery
Customer service $ 22 per phone call

Two of the companys many customers include Customer A and Customer B. These two customers consumed the companys activities as follows:

Total Expected Activity
Customer A Customer B
Travel (number of miles driven) 285 250
Deliveries (number of deliveries) 15 5
Customer service (number of phone calls) 20 12

How much cost would be assigned from the Travel activity to Customer A?

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