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Author Question: Hinckley & Granger Company had the following activities, estimated indirect activity costs, and ... (Read 60 times)

kfurse

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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

How much of the account inquiry cost will be assigned to Department Q?
◦ $6,000
◦ $9,000
◦ $8,000
◦ $18,000


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Marked as best answer by kfurse on Jan 4, 2020

Pariscourtney

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kfurse

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review


laurnthompson

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

 

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