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Rafael operates a chain of luxury goods delivery shops located in major cities across the United States. The company is implementing an activity - based
Rafael operates a chain of luxury goods delivery shops located in major cities across the United States. The company is
implementing an activitybased costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer
Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup
and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity
measure because it is an organizationsustaining activity. The following costs see first table below will be assigned using
the activitybased costing system. The distribution of resource consumption across the activity cost pools follows the next
table. How much cost, in total, would be allocated in the firststage allocation to the "Pickup and Delivery" activity cost pool?
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