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Author Question: Extreme Manufacturing Company provides the following ABC costing information: ActivitiesTotal ... (Read 35 times)

jho37

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Extreme Manufacturing Company provides the following ABC costing information:

 Activities  Total Costs Activity-cost drivers
 Account inquiry $420,000 14,000 hours
 Account billing $225,000 5,000,000 lines
 Account verification accounts $95,000 40,000 accounts
 Correspondence letters $46,000 8,000 letters
 Total costs $786,000 
The above activities are used by Departments A and B as follows:

 Department A Department B
 Account inquiry hours2,900 hours 4,400 hours
 Account billing lines600,000 lines450,000 lines
 Account verification accounts 12,000 accounts 10,000 accounts
 Correspondence letters 1,800  letters 2,200 letters

How much of account verification costs will be assigned to Department A?
◦ $23,750
◦ $28,500
◦ $95,000
◦ $47,500


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Marked as best answer by jho37 on Mar 6, 2021

sailorcrescent

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jho37

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Reply 2 on: Mar 6, 2021
Excellent


Perkypinki

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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