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Assume a service company has implemented an activity-based costing system with five activities as shown...

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Accounting

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) $ 400,0008,000 deliveries
Manual order processing (Number of manual orders) $ 280,0005,000 manual orders
Electronic order processing (Number of electronic orders) $ 150,00015,000 electronic orders
Line item picking (Number of line items picked) $ 450,000375,000 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 1025
Number of manual orders 030
Number of electronic orders 150
Number of line items picked 120250
How much total activity cost should be assigned to Hospital B for internal management purposes?
Multiple Choice
$3,340
$3,230
$3,030
$3,140

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