The following table contains information about several activity-based customer costs and the use of these activities by the firm’s customers.

REQUIRED:

Using the information provided, please develop an ABC rate for each activity and use it to charge costs to the firm’s customers.

Transcribed Image Text:

Use by Use by Use by Activity Cost Customer A Customer B Customer C Sales call hours $500,000 1,500 3,500 5,000 Number of sales made $350,000 5,000 10,000 2,500 Post purchase support hours $600,000 6,000 5,000 1,000