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Author Question: Hinckley & Granger Company had the following activities, estimated indirect activity costs, and ... (Read 71 times)

asd123

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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 inquiry activity?
◦ $30.00
◦ $10.00
◦ $1.50
◦ $18.75
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by asd123 on Jan 4, 2020

iceage

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Reply #1 on: Jan 4, 2020
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asd123

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Reply 2 on: Jan 4, 2020
Wow, this really help

bassamabas

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

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