Assume a company's activity-based costing system Includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Activity Rate $2 per mile driven $ 50 per delivery $ 22 per phone call Customer service Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 300 250 Deliveries (number of deliveries) Customer service (number of phone calls) 15 20 12 How much total activity cost would be assigned to Customer A from the company's three activities? Multiple Choice $1,680 $1,980 $1,790 $1.690
Assume a company's activity-based costing system Includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Activity Rate $2 per mile driven $ 50 per delivery $ 22 per phone call Customer service Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 300 250 Deliveries (number of deliveries) Customer service (number of phone calls) 15 20 12 How much total activity cost would be assigned to Customer A from the company's three activities? Multiple Choice $1,680 $1,980 $1,790 $1.690
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 19E
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