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COTB MC Qu . 4 - 6 3 ( Static ) Assume a service company has implemented... Assume a service company has implemented an activity
COTB MC QuStatic Assume a service company has implemented...
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 orders,Line 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 are as follows:
tableActivityActivity Measure,Hospital AHospital BNumber of deliveries,Number of manual orders,Number of electronic orders,Number of line items picked,
How much cost would be assigned from the Manual Order Processing activity to Hospital B
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