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 activity-based costing system includes three activities with the following activity rates:
Activity Cost Pool Activity Rate
Travel $ 2 per mile driven
Deliveries $ 55 per delivery
Customer service $ 22 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)300250
Deliveries (number of deliveries)157
Customer service (number of phone calls)2012
How much total activity cost would be assigned to Customer B from the companys three activities?
Multiple Choice
$1,259
$1,379
$1,109
$1,149

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