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QUESTION 15 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
QUESTION 15 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 Vehicle operating expenses 45% 40% 10% 5% 100% Vehicle depreciation 40% 50% 0% 10% 100% Customer service salaries 20% 30% 35% 15% 100% How much of the company's total costs should not be allocated to customers when analyzing customer profitability? $62,000 $62,500 $87,500 $42,000
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