Assume a companys activity-based costing system includes three activities. The following information is available with respect to those activities: Activity Cost Pool Estimated Overhead Cost Expected Activity Travel $ 150,000 100,000 miles driven Deliveries $ 149,600 2,200 customer deliveries Customer service $ 220,000 10,000 phone calls What is the activity rate for the Deliveries activity? Multiple Choice $68 per delivery $78 per delivery $88 per delivery $58 per delivery

pt 2

Assume a company incurs $197,000 of customer service salaries. The employees in the Customer Service Department spend their time performing four activities as follows: 40% of their time is spent in "Problem Resolution," 25% of their time is spent in "New Account Setup," 20% of their time is spent in "Payment Processing," and 15% is spent in "Other" activities. In the companys activity-based costing system, how much of the customer service salaries would be allocated to the "New Account Setup" activity?

Multiple Choice

• $49,250

• $39,400

• $128,050

• $78,800