QUESTION

1. 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		$	50	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)		300				250
   Deliveries (number of deliveries)		15				5
   Customer service (number of phone calls)		20				12

   How much total activity cost would be assigned to Customer B from the companys three activities?

   		$974
   		$1,244
   		$1,114
   		$1,014