Question: Handy Accessories is using an ABC system for allocating costs to activities. The firm has three cost pools: products, shipping, and customer service/setup. Product costs

Handy Accessories is using an ABC system for allocating costs to activities. The firm has three cost pools: products, shipping, and customer service/setup. Product costs are allocated per unit, while the shipping costs are allocated based on the mileage transporting the goods. The customer service/setup costs are determined by the number of calls the sales person must make to the customer. The following cost information is available: Product costs for 20,000 units was $450,000. The shipping costs were $35,000, and the total miles driven were 7,000. The sales staff made 40 calls to customers this month at a total cost of $75,000. For a customer who ordered 3,000 units that required 400 miles for delivery and 3 service calls, what would be the cost associated with this customer?

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