Company provdes the following ABC costing information: Total Costs Activity-cost drivers itles 16,000 hours $320,000 $90,000 ount inquiry count billing count verification accounts orrespondence letters Total costs 6,000,000 lines $174,000 80,000 accounts $36,250 5,000 letters $620,250 The above activities are used by Departments A and B as follows: Department A Department B 3,700 hours 2,200 hours 900,000 lines Account inquiry hours Account billing Vines 750,000 lines Account verification accounts 5,000 accounts 3,000 accounts Correspondence letters 1,700 letters 2,100 letters How much of the account billing cost will be assigned to Department B? OA S90,000 OB. $11,250 OC. S45,000 OD. $13,500 O Time Remaining: 02:27:15 esc ) 23 & 3. 5. 6. 8. 9. fab W
Company provdes the following ABC costing information: Total Costs Activity-cost drivers itles 16,000 hours $320,000 $90,000 ount inquiry count billing count verification accounts orrespondence letters Total costs 6,000,000 lines $174,000 80,000 accounts $36,250 5,000 letters $620,250 The above activities are used by Departments A and B as follows: Department A Department B 3,700 hours 2,200 hours 900,000 lines Account inquiry hours Account billing Vines 750,000 lines Account verification accounts 5,000 accounts 3,000 accounts Correspondence letters 1,700 letters 2,100 letters How much of the account billing cost will be assigned to Department B? OA S90,000 OB. $11,250 OC. S45,000 OD. $13,500 O Time Remaining: 02:27:15 esc ) 23 & 3. 5. 6. 8. 9. fab W
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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