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Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate $ 2
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate $ 2 per mile driven $ 50 per delivery $ 22 per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 305 250 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? Multiple Choice $610 $153 $60 $500 Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate $2 per mile driven $ 50 per delivery $ 22 per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) Total Expected Activity Customer A Customer B 300 250 15 5 20 12 If the company earned $2,060 in revenue serving Customer A, then what is the customer margin for this customer? Multiple Choice $370 $340 $270 $440
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