ssume a company’s activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $190,000. 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?
ssume a company’s activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $190,000. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a company’s activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle
| 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?
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