Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000;...

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Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000; and Customer service salaries, $210,000. These costs were consumed by four activities as follows: Customer Travel Deliveries Service 40% 50% 30% Other Total 5% 100% 10% 100% 15% 100% Vehicle operating expenses Vehicle depreciation Customer service salaries 10% 0% 45% 40% 20% 35% How much of the company's total costs should not be allocated to customers when analyzing customer profitability? $62,000 $62,500 $87,500 $42,000 Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $160,000; and Customer service salaries, $210,000. These costs were consumed by four activities as follows: Customer Travel Deliveries Service 40% 50% 30% Other Total 5% 100% 10% 100% 15% 100% Vehicle operating expenses Vehicle depreciation Customer service salaries 10% 0% 45% 40% 20% 35% How much of the company's total costs should not be allocated to customers when analyzing customer profitability? $62,000 $62,500 $87,500 $42,000

Answer rating: 100% (QA)

Answer The correct option is B Solution Calculation Here Other activity cost should not be ... View the full answer