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

Using ABC, what is the Total Support Cost for Jones Company?

A.$1,500

B.$1,640

C.$1,000

D.$5,987