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How much of account verification costs will be assigned to Department A? Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account
How much of account verification costs will be assigned to Department A? Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters How much of account verification costs will be assigned to Department A? A. $23.700 B. $19,750 C. $79,000 D. $39,500 Total Costs $300,000 $100,000 $79,000 $40,250 $519,250 Activity - cost drivers 15,000 hours 5,000,000 lines 40,000 accounts 7,000 letters Department A 2,800 hours 400,000 lines 12,000 accounts 1,300 letters Department B 4,300 hours 250,000 lines 10,000 accounts 1,700 letters
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