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Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity Cost Drivers Account inquiry Account billing $608,000 $123,750 19,000 hours . 275,000
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity Cost Drivers Account inquiry Account billing $608,000 $123,750 19,000 hours . 275,000 lines Account verification $261,450 83,000 accounts Correspondence letters $39,100 4,600 letters Total costs $1,032,300 The above activities are used by Department A and B as follows: Account inquiry Account billing Account verification Correspondence letters Department A Department B 7,500 hours 2,760 hours 85,000 lines 112,000 lines 13,800 accounts 16,700 accounts 1,600 letters 2,350 letters What is the ABC rate for account inquiry hours? [ What is the ABC rate for account billing? What is the ABC rate for account verification? What is the ABC rate for correspondence letters? How much of the account inquiry cost will be allocated to Department A? How much of the account billing cost will be allocated to Department A? How much of the account verification costs will be allocated to Department A? How much of the correspondence letters cost will be allocated to Department A? What is the total cost allocated to Department A
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