Need help please Assume a company's activity-based costing system includes three activities with the following activityrates:Travel $2 per mile drivenDeliveries $50 per deliveryCustomer service $22 per phone callTwo of the company's many customers include Customer A and Customer B. These two customersconsumed the company's activities as follows:Total Expected ActivityCustomer A Customer BTravel (number of miles driven)300250Deliveries (number of deliveries)15512Customer service (number of phone calls) 20If the company earned $1,230 in revenue serving Customer B, then what is the customer margin forthis customer?A) $256B) $216C) $196D) $236

Step 1: Introduction to the Activity-Based Costing (ABC) ProcessThe indirect costs incurred by a…

Answered: Assume a company's activity-based…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate $ 2 per mile driven $ 50 per delivery $ 22 per phone call Travel Deliveries Customer service 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 A Customer B Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) 300 250 15 5 20 12 If the company earned $1,230 in revenue serving Customer B, then what is the customer margin for this customer? Multiple Cholce $236 $216 $196
Assume a company's 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 company's many customers include Customer A and Customer B. These two customers consumed the company's 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 If the company earned $1,130 in revenue serving Customer B, then what is the customer margin for this customer? Multiple Choice $96 $156 $116 $136
Assume a company’s 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 company’s many customers include Customer A and Customer B. These two customers consumed the company’s activities as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 340 250 Deliveries (number of deliveries) 15 5 Customer service (number of phone calls) 20 12 How much cost would be assigned from the Travel activity to Customer A?
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Assume a company's activity-based costing system Includes three activitles with the following activity rates: Activity Cost Pool Activity Rate $ 2 per mile driven $ 50 per delivery $ 22 per phone call Travel Deliveries Customer service Two of the company's many customers Include Customer A and Customer B. These two customers consumed the company's activitles as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 300 250 Deliveries (number of deliveries) Customer service (number of phone calls) 15 5 20 12 How much total activity cost would be assigned to Customer A from the company's three activitles? Multiple Choice $1,680 $1,980 $1,790 $1,690
tekabhai
Assume a company's activity-based costing system Includes three activities. The following Information is avallable with respect to those activitles: Estimated Overhead Activity Cost Pol Travel Cost Expected Activity $ 150,000 $ 110,000 $ 220,000 100.000 miles driven Deliverles 2,200 customer deliverles Customer service 10,000 phone calls What is the activity rate for the Travel activity? Multiple Choice $1.50 per mile driven $15.00 per mile driven $0.15 per mile driven $1.15 per mile driven
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Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 400,000 8,000 deliveries Manual order processing (Number of manual orders) $ 280,000 5,000 manual orders Electronic order processing (Number of electronic orders) $ 150,000 15,000 electronic orders Line item picking (Number of line items picked) $ 450,000 375,000 line items Other organization-sustaining costs (None) $ 300,000 The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Measure Activity Hospital A Hospital B Number of deliveries 10 25 Number of manual orders 0 30 Number of electronic orders 15 0 Number of line items picked 125 250 How much total activity cost should be assigned to Hospital A for internal…
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 400,000 8,000 deliveries Manual order processing (Number of manual orders) $ 280,000 5,000 manual orders Electronic order processing (Number of electronic orders) $ 150,000 15,000 electronic orders Line item picking (Number of line items picked) $ 450,000 375,000 line items Other organization-sustaining costs (None) $ 300,000 The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Measure Activity Hospital A Hospital B Number of deliveries 10 25 Number of manual orders 0 31 Number of electronic orders 15 0 Number of line items picked 120 250 How much cost would be assigned from the Manual Order Processing activity to…
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Hospital A Hospital B Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 8. 25 30 15 0. 115 250 How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 <…
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) 8,000 deliveries 5,000 manual orders Electronic order processing (Number of electronic orders) 15,000 electronic orders Line item picking (Number of line items picked) Other organization-sustaining costs (None) 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Hospital A Hospital B Number of deliveries 12 25 Number of manual orders 30 Number of electronic orders 15 Number of line items picked 130 250 How much total activity cost should be assigned to Hospital A for internal management purposes?

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