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XYZ Company use ABC costing information for Customer Profitability Analysis. It has prepared the following activity based drivers and related costs for customers: Customer-Related Activities

XYZ Company use ABC costing information for Customer Profitability Analysis. It has prepared the following activity based drivers and related costs for customers:

Customer-Related Activities Cost Driver Base Cost Drive Rate

Order processing Purchase orders $150

Sales contacts Contacts $100

(phone calls, faxes, etc.)

Sales visits Visits $1,000

Billing and collection Invoices $160

In looking at two of its customers, it has calculated the following support activities for Jones Company:

Jones Company

Purchase orders 4

Contacts 4

Visits 0

Invoices 4

how much is the Support Activity cost for MIller Company?

A.$1,345

B.$2,000

C.$5,580

D.$4,800

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