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Armidale Company currently applies Activity - Based Costing ( ABC ) system. The company s 2 0 2 3 business books contain the following budgeted
Armidale Company currently applies ActivityBased Costing ABC system. The companys business books contain the following budgeted pieces of informationdata:
Activities Total Costs Quantity of cost drivers
Inquiry hours $ hours
Billing accounts $ lines
Verification cost $ accounts
Letters sent $ letters
Total costs $
The company operates with two major departments, which respectively uses the following proportion of the total activitiesactual usage:
Clearing Depart Admin Depart
Inquiry hours hours hours
Billing accounts lines lines
Verification accounts accounts
Letters sent letters letters
The two departments managers respective salaries are as follows: Clearing Depart $ and Admin Depart $
Required: Work out the following round off final answers to the nearest dollar:
The inquiry cost amount that the Clearing Depart will be charged with.
The billing accounts cost amount that the Admin Depart will be charged with.
The verification cost cost amount that the Clearing Depart will be charged with.
The letters sent cost amount that the Admin Depart will be charged with.
The total cost amount that the Clearing Depart will be charged with.
The total cost amount that the Admin Depart will be charged with.
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