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Author Question: Extreme Manufacturing Company provides the following ABC costing information: ActivitiesTotal ... (Read 41 times)

frankwu

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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 $220,000 4,000,000 lines
 Account verification accounts $182,000 80,000 accounts
 Correspondence letters $25,000 4,000 letters
 Total costs $747,000 
The above activities are used by Departments A and B as follows:

 Department A Department B
 Account inquiry hours2,200 hours 3,700 hours
 Account billing lines600,000 lines450,000 lines
 Account verification accounts 5,000 accounts 3,000 accounts
 Correspondence letters 1,000  letters 1,400 letters

How much of the account billing cost will be assigned to Department B?
◦ $220,000
◦ $110,000
◦ $24,750
◦ $33,000


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Marked as best answer by frankwu on Mar 6, 2021

cegalasso

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frankwu

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


robbielu01

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Reply 3 on: Yesterday
Excellent

 

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