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Assume a company's activity-based costing system includes three activities with the following activity rates: 47 8 02.10.19 Activity Cost Pool Activity Rate Travel $ 2
Assume a company's activity-based costing system includes three activities with the following activity rates: 47 8 02.10.19 Activity Cost Pool Activity Rate Travel $ 2 per mile driven Deliveries $ 46 per delivery Customer service $ 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) 300 250 Deliveries (number of deliveries) 15 5 Customer service number of phone calls) 20 12 How much total activity cost would be assigned to Customer A from the company's three activities? Multiple Choice $1,620 $1.920 $1,730 $1,630
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