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Author Question: Hinckley & Granger Company had the following activities, estimated indirect activity costs, and ... (Read 37 times)

ARLKQ

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on: Jan 4, 2020
Hinckley & Granger Company had the following activities, estimated indirect activity costs, and allocation bases:

ActivitiesIndirect Activity CostsAllocation Base
Account inquiry (hours) $75,000 2,500
Account billing (lines) $45,000 30,000
Account verification (accounts) $18,000 24,000
Correspondence (letters) $40,000 4,000

Hinckley & Granger uses activity-based costing.

The above activities are used by Departments P and Q as follows:

​Department PDepartment Q
Account inquiry (hours) 300 600
Account billing (lines) 8,000 6,000
Account verification (accounts) 5,000 4,500
Correspondence (letters) 500 600

What is the cost per driver unit for the account billing activity?
◦ $7.50
◦ $10.00
◦ $1.50
◦ $0.75
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Marked as best answer by ARLKQ on Jan 4, 2020

Brenm

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Reply #1 on: Jan 4, 2020
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ARLKQ

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Reply 2 on: Jan 4, 2020
Gracias!

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Reply 3 on: Yesterday
Excellent

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