Question: A company Implemented an activity-based costing system, which includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate
A company Implemented an activity-based costing system, which includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate $ 2 per mile driven $50 per delivery $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) 300 250 Deliveries (number of deliveries) 15 Customer service (number of phone calls) 20 12 5 of the company earned $2,070 in revenue serving Customer A, then brat is the customer margin for this customer? Multiple Choice
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