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Assume a service company has implemented an activity - based costing system with four activities as shown below: table [ [ Activity Cost Pool
Assume a service company has implemented an activitybased costing system with four activities as shown below:
tableActivity Cost Pool Activity MeasureTotal Cost,Total ActivityCustomer deliveries Number of deliveries$ deliveriesManual order processing Number of manual orders$ manual ordersElectronic order processing Number of electronic orders$ electronic ordersLine item picking Number of line items picked$ line items
The company serves numerous customers, two of which include Hospital A and Hospital B The activity demands pertaining to these two customers a as follows:
tableActivityActivity Measure,Hospital AHospital BNumber of deliveries,Number of manual orders,Number of electronic orders,Number of line items picked,
How much total activity cost should be assigned to Hospital A
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