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Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases: Allocation Base 2200 33,000 Activities Indirect Activity Costs Account
Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases: Allocation Base 2200 33,000 Activities Indirect Activity Costs Account inquiry (hours) $85,000 Account billing (lines) $52,000 Account verification (accounts) $36.250 Correspondence (letters) $71,000 The company uses activity-based costing. 28,500 11,000 The above activities are used by Departments P and Q as follows: Department Pl Department Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 8000 6000 Correspondence (letters) 1,000 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) $10,175 $12.175 -$290 $7632
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