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Lopez Company sells its products for $800 per unit. The firm's Cost of Goods Sold ratio is 60% of revenues. Lopez Company currently estimates that
Lopez Company sells its products for $800 per unit. The firm's Cost of Goods Sold ratio is 60% of revenues. Lopez Company currently estimates that total indirect customer support costs equal 8% of customer revenues. Lopez has two customers Moreno and Vega. Moreno purchased 650 units and Vega purchased 390 units Lopez's management accountant and has gathered the following ABC rate and activity information: ABC Cost Rate Moreno Activity Vega Activity Purchase Orders $182 per purchase 112 30 order Deliveries $310 per delivery 205 68 Inspections $150 per inspection 277 50 Customer Visits $ 80 per customer visit 140 35 What is the amount of support cost allocated to Vega Company using the Activity Based Costing (ABC) system
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