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Author Question: Extreme Manufacturing Company provides the following ABC costing information: ActivitiesTotal ... (Read 37 times)

KimWrice

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Extreme Manufacturing Company provides the following ABC costing information:

 Activities  Total Costs Activity-cost drivers
 Account inquiry $320,000 16,000 hours
 Account billing $200,000 4,000,000 lines
 Account verification accounts $173,250 70,000 accounts
 Correspondence letters $24,000 4,000 letters
 Total costs $717,250 
The above activities are used by Departments A and B as follows:

 Department A Department B
 Account inquiry hours2,700 hours 4,200 hours
 Account billing lines900,000 lines750,000 lines
 Account verification accounts 8,000 accounts 6,000 accounts
 Correspondence letters 1,400  letters 1,800 letters

How much of the account inquiry cost will be assigned to Department A?
◦ $54,000
◦ $320,000
◦ $160,000
◦ $84,000


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Marked as best answer by KimWrice on Mar 6, 2021

frejo

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KimWrice

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Reply 2 on: Mar 6, 2021
Excellent


hramirez205

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Reply 3 on: Yesterday
Gracias!

 

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