Part 8 Activity-Based Costing (30 points) AEBH Company operates a fleet of delivery cars. The company's Activity-Based Cost (ABC) system has three activity cost pools: (1) Travel; (2) Customer Service; and, (3) Other. The activity measures are: (1) miles driven; (2) number of customers; and (3) none, since it represents an Organization-Sustaining- Activity. The following costs have been assigned to Cost Pools using the ABC system: Driver wages Vehicle operating expense Customer representation Administrative expenses $700,000 See below * $560,000 = $700,000 times 80% 300,000 200,000 400,000 Total $1,600,000 ======== The above costs have been allocated to ABC cost pools based on the following percentages: 10% Driver wages Vehicle operating expense Customer representation Administrative expenses Allocation Percentages Travel Customer Service 80% 90% 10% 80% 10% 10% Other is a Self-sustaining activity 10% 10% 10% 80% Complete the Cost Pool Dollar Amounts Worksheet Travel Customer Service Driver wages (see above) $560,000* a. Vehicle operating expense b. C. Customer representation d. e. Administrative expenses f. 8 Total $ $ Expected Activity Measures from the beginning of the period are: TRAVEL Expected miles driven 500,000 miles CUSTOMER SERVICE Expected number of customers 10,000 customers Required 1. Complete the "Cost Pool Dollar Amounts Worksheet" shown above. 2. Determine the activity rate for the Travel; and Customer Service pools. 3. Calculate the overhead to Buttons customer; fifty miles were driven. Computations for requirement #1 Show computations for letters "a", through "g" to receive full credit. Part 8 continued Requirement #2 Activity rate for TRAVEL show calculations Activity rate for CUSTOMER SERVICE show calculations Requirement #3 Overhead to Buttons Customer 50 miles driven. Show calculations