Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $600,000 15,000 hours Account billing $200,000 4,000,000 lines Account
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $600,000 15,000 hours Account billing $200,000 4,000,000 lines Account verification accounts $190,000 80,000 accounts Correspondence letters $26.000 4000 letters Total costs $1,016,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2600 hours 4100 hours Account billing lines 800,000 lines 650,000 lines Account verification accounts 5000 accounts 3000 accounts Correspondence letters 1500 letters 1900 letters How much of the account inquiry cost will be assigned to Department A? $600,000 $104,000 $300,000 $164,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started