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
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$249,250
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$219,250
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$230,000
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$200,000
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