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

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Accounting

Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $195,000. These costs were consumed by four activities as follows:

Travel Deliveries Customer Service Other Total
Vehicle operating expenses 45 % 40 % 10 % 5 % 100 %
Vehicle depreciation 40 % 50 % 0 % 10 % 100 %
Customer service salaries 20 % 30 % 35 % 15 % 100 %

How much total cost (including all three expenses) would be allocated to the Travel activity cost pool?

Multiple Choice

  • $249,250

  • $219,250

  • $230,000

  • $200,000

Answer & Explanation Solved by verified expert
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