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 $300,000 10,000 hours Account billing $150,000 5,000,000
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Account inquiry $300,000 10,000 hours Account billing $150,000 5,000,000 lines Account verification accounts $159,250 70,000 accounts Correspondence letters $58,000 8,000 letters Total costs $667 250 The above activities are used by Departments A and B as follows: Department A Account inquiry hours 2,700 hours Account billing lines 800,000 lines Account verification accounts 7,000 accounts Correspondence letters 1,700 letters Department B 4,200 hours 650,000 lines 5,000 accounts 2,100 letters How much of the account inquiry cost will be assigned to Department A? O A. $300,000 OB. $150,000 O C. $81,000 OD. $126,000
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