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Author Question: Extreme Manufacturing Company provides the following ABC costing information: ActivitiesTotal ... (Read 36 times)

meagbuch

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Extreme Manufacturing Company provides the following ABC costing information:

 Activities  Total Costs Activity-cost drivers
 Account inquiry $390,000 13,000 hours
 Account billing $275,000 5,000,000 lines
 Account verification accounts $130,500 60,000 accounts
 Correspondence letters $22,000 4,000 letters
 Total costs $817,500 
The above activities are used by Departments A and B as follows:

 Department A Department B
 Account inquiry hours2,500 hours 4,000 hours
 Account billing lines800,000 lines650,000 lines
 Account verification accounts 9,000 accounts 7,000 accounts
 Correspondence letters 2,000  letters 2,400 letters

How much of correspondence costs will be assigned to Department A?
◦ $22,000
◦ $49,500
◦ $11,000
◦ $11,242


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Marked as best answer by meagbuch on Mar 6, 2021

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meagbuch

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Reply 2 on: Mar 6, 2021
Wow, this really help


ryhom

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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