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, $120,000; and Customer service salaries, $175,000. 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?
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