Assume a service company has implemented an activity-based costing system with five activities as shown below:...
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Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Customer deliveries (Number of deliveries) $ 400,000 Manual order processing (Number of manual orders) $ 280,000 Electronic order processing (Number of electronic orders) $ 150,000 Line item picking (Number of line items picked) $ 450,000 Other organization-sustaining costs (None) $ 300,000 Total Activity 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Number of deliveries Hospital A 10 Hospital B 25 Number of manual orders 0 30 Number of electronic orders 15 0 Number of line items picked 120 250 How much total activity cost should be assigned to Hospital B for internal management purposes? Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Customer deliveries (Number of deliveries) $ 400,000 Manual order processing (Number of manual orders) $ 280,000 Electronic order processing (Number of electronic orders) $ 150,000 Line item picking (Number of line items picked) $ 450,000 Other organization-sustaining costs (None) $ 300,000 Total Activity 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Number of deliveries Hospital A 10 Hospital B 25 Number of manual orders 0 30 Number of electronic orders 15 0 Number of line items picked 120 250 How much total activity cost should be assigned to Hospital B for internal management purposes?
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