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Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification
Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Indirect Activity Costs $86,200 $54,000 $37,250 $73,000 Allocation Base 2,100 30,000 28,500 12,000 The company uses activity-based costing. The above activities are used by Departments P and Q as follows: Department P Account inquiry (hours) 400 Account billing (lines) 10,000 Account verification (accounts) 8,000 Department Q 800 4,000 7,000 Annn A. $10,456 B. $9,149 O C. $879 D. $11,456 Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) $86,200 $54,000 $37,250 $73,000 2,100 30,000 28,500 12,000 The company uses activity based costing. The above activities are used by Departments P and Q as follows: Department P Account inquiry (hours) 400 Account billing (lines) 10,000 Account verification (accounts) 8,000 Correspondence (letters) 1,000 Department Q 800 4,000 7,000 2,000 How much of the account verification costs will be assigned to Department P? (Do not round intermediate calculations and round the final answer to the nearest dollar.) A. $10,456 B. $9,149 C. $879 OD. $11,456
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