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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) Customer deliveries (Number of
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (none) Total Cost $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 Total Activity 8,eee deliveries 10,880 manual orders 15,80 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 Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Activity Hospital A Hospital B 10 25 34 15 120 250 How much cost would be assigned from the Manual Order Processing activity to Hospital B7 Multiple Choice $952 $2,800 $280,000 $280.952
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