Question: 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

Assume a company’s activity-based costing system includes three activities with the following activity rates:

Activity Cost PoolActivity Rate
Travel$ 2per mile driven
Deliveries$ 50per delivery
Customer service$ 22per 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 ACustomer B
Travel (number of miles driven)310250
Deliveries (number of deliveries)155
Customer service (number of phone calls)2012

How much cost would be assigned from the Travel activity to Customer A?

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