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Author Question: Hinckley & Granger Company had the following activities, estimated indirect activity costs, and ... (Read 32 times)

iveyjurea

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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 correspondence activity?
◦ $1.50
◦ $16.00
◦ $10.00
◦ $30.00


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Marked as best answer by iveyjurea on Jan 4, 2020

joshbk44

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iveyjurea

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Reply 2 on: Jan 4, 2020
Excellent


hramirez205

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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