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Author Question: Extreme Manufacturing Company provides the following ABC costing information: ActivitiesTotal ... (Read 33 times)

swpotter12

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Extreme Manufacturing Company provides the following ABC costing information:

 Activities  Total Costs Activity-cost drivers
 Account inquiry $280,000 14,000 hours
 Account billing $350,000 7,000,000 lines
 Account verification accounts $93,750 50,000 accounts
 Correspondence letters $29,000 4,000 letters
 Total costs $752,750 
The above activities are used by Departments A and B as follows:

 Department A Department B
 Account inquiry hours2,100 hours 3,600 hours
 Account billing lines500,000 lines350,000 lines
 Account verification accounts 7,000 accounts 5,000 accounts
 Correspondence letters 1,200  letters 1,600 letters

How much of the total costs will be assigned to Department A?
◦ $88,825
◦ $118,825
◦ $120,000
◦ $85,075


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Marked as best answer by swpotter12 on Mar 6, 2021

adf223

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swpotter12

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Reply 2 on: Mar 6, 2021
Excellent


phuda

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Reply 3 on: Yesterday
Gracias!

 

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