Solution-How much total cost would be allocated to travel

How much total cost would be allocated to travel activity

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Reference no: EM133190014

Question - Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $205,000. 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%

Required - How much total cost (including all three expenses) would be allocated to the Travel activity?

Reference no: EM133190014

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How much total cost would be allocated to travel activity

Reference no: EM133190014

Reference no: EM133190014

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