Question: 2. 0.36/4 points| Previous Answers Question 2: Allocating costs using ABC You have an ABC system with three pools ool 1 ool 2 ool 3

 2. 0.36/4 points| Previous Answers Question 2: Allocating costs using ABCYou have an ABC system with three pools ool 1 ool 2

2. 0.36/4 points| Previous Answers Question 2: Allocating costs using ABC You have an ABC system with three pools ool 1 ool 2 ool 3 total cost in the pool $60,000 45,000 30,000 roductA 4,000 DL 20 setups 50 hours number of cost driver units roductB 6,000 DL 30 setups 150 hours total 10,000 DL 50 setups 200 hours Compute the activity rates and the allocated costs for products A and B allocated costs for roduct A allocated costs for roduct B activity rate pool 1 pool 2 pool 3 $6.00 per DL$ per setup per hour total allocated costs for each product +0.64/4 points I Previous Answers My Notes Ask Your Teacher Question 3: Evaluating customer profitability You own a credit card company. You want to evaluate the profitability of customers A and B customer A customerB credit card balance number of transactions $1,000 100 $400 40 number of customer-support calls 40 The only source of revenue from customers is the interest that you charge on credit card balances. You charge customers an interest rate of 30%. Thus, if the credit card balance is $1,000, revenue is $1000 0.3 5300 Variable costs are zero for simplicity. From your ABC system, the activity rates are S0.75 per transaction and $6 per customer-support call. a) Compute revenue, costs, and profit margin for each customer customer A customer B Revenue ariable costs Contribution margin Allocated costs transactions Allocated costs customer support Profit margin Enter negative numbers with a minus sign, i.e., a loss of $200 should be entered as -200, not as (200) or ($200)

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