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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials

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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit Per Year $200 $ 75 $ 50 $ 10 $ 8 $300,000 IN Using absorption costing, what is the cost of the company's ending inventory? o $30,000 $143,000 $135,000 O $165,000 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 270 250 Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) 15 5 20 12 How much cost would be assigned from the Travel activity to Customer A? 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 270 250 Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) 15 5 20 12 a How much cost would be assigned from the Travel activity to Customer A? O $540 O $60 O $500 O $135 Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000; and Customer service salaries, $210,000. These costs were consumed by four activities as follows: Customer Travel Deliveries Service Other Total 45% 40% 10% 5% 100% Vehicle operating expenses Vehicle depreciation Customer service salaries 40% 50% 0% 10% 100% 20% 30% 35% 15% 100% How much of the company's total costs should not be allocated to customers when analyzing customer profitability? O $42,000 O $62,000 O $62,500 08324/files $87.500

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