Question
A company provides the following abc costing information : Activities total cost activity cost drivers Inquiry 320000 16000 hours Billing 200000 4000000 lines Verification 173250
A company provides the following abc costing information : Activities total cost activity cost drivers Inquiry 320000 16000 hours Billing 200000 4000000 lines Verification 173250 70000 accounts Correspondence 24000 4000 letters Total costs 717250 The above activities are used by departments a and b as follows: Department a department b Account inquiry hours 2700 hours 4200 hours Account billing lines 900000 lines 750000 lines Verification accounts 8000 accounts 6000 accounts Correspondent letters 1400 letters 1800 letters How much of the account inquiry cost will be assigned to department a ?
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