Question: Assume a company s activity - based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Travel $ 2
Assume a companys activitybased costing system includes three activities with the following activity rates:
Activity Cost Pool Activity Rate
Travel $ per mile driven
Deliveries $ per delivery
Customer service $ per phone call
Two of the companys many customers include Customer A and Customer B These two customers consumed the companys activities as follows:
Total Expected Activity
Customer A Customer B
Travel number of miles driven
Deliveries number of deliveries
Customer service number of phone calls
How much total activity cost would be assigned to Customer B from the companys three activities?
Multiple Choice
$
$
$
$
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