Assume a company's activity-based costing system includes three activities. The following information is available with respect to those activities: Estimated Activity Cost Pool Overhead Cost Travel $ 150,000 Expected Activity 100,000 miles driven customer Deliveries $ 149,600 2,200 deliveries Customer service $ 220,000 10,000 phone calls What is the activity rate for the Deliveries activity? Multiple Choice $58 per delivery $68 per delivery

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
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Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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Assume a company's activity-based costing system includes three activities. The following information is
available with respect to those activities:
Estimated
Activity Cost Pool
Overhead
Cost
Travel
$ 150,000
Expected Activity
100,000 miles driven
customer
Deliveries
$ 149,600
2,200
deliveries
Customer service
$ 220,000
10,000 phone calls
What is the activity rate for the Deliveries activity?
Multiple Choice
$58 per delivery
$68 per delivery
Transcribed Image Text:Assume a company's activity-based costing system includes three activities. The following information is available with respect to those activities: Estimated Activity Cost Pool Overhead Cost Travel $ 150,000 Expected Activity 100,000 miles driven customer Deliveries $ 149,600 2,200 deliveries Customer service $ 220,000 10,000 phone calls What is the activity rate for the Deliveries activity? Multiple Choice $58 per delivery $68 per delivery
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