Assume a company’s activity-based costing system includes three activities with the following activity rates:

Activity Cost Pool	Activity Rate
Travel	$ 2	per mile driven
Deliveries	$ 50	per delivery
Customer service	$ 22	per phone call

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)	310	250
Deliveries (number of deliveries)	15	5
Customer service (number of phone calls)	20	12

How much cost would be assigned from the Travel activity to Customer A?

Answer rating: 100% (QA)

ANSWER To calculate the cost assigned from the Travel activity to Customer A we multiply t... View the full answer