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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 ActivitiesCost

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 ActivitiesCost Driver BaseCost Drive RateOrder processingPurchase orders$150Sales contacts (phone calls, faxes, etc.)Contacts$100Sales visitsVisits$1,000Billing and collectionInvoices$160

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

Jones CompanyPurchase orders4Contacts4Visits0Invoices4

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

A.$1,500

B.$1,640

C.$1,000

D.$5,987

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