In a department, 4,200 units are completed and transferred out and 650 remain in ending WIP at 70% complete. If an equivalent unit costs $6.00 for direct materials, what is the value of materials transferred out?

Question 2 options:

	$25,200
	$2,730
	$3,900
	$17,640

Montreal Woodworking Inc. uses activity based costing and has had the following activities, estimated indirect activity costs, and allocation bases:

Activities	Indirect Activity Costs	Allocation Base
Account inquiry (hours)	$125,000	25,000
Account billing (lines)	$80,000	8,000
Account verification (accounts)	$75,000	5,000
Correspondence (letters)	$36,000	6,000
The above activities are used by Departments 123 and ABC as follows:
	Dept. 123	Dept. ABC
Account inquiry (hours)	600	500
Account billing (lines)	2,700	4,200
Account verification (accounts)	3,100	1,800
Correspondence (letters)	1,400	1,750

1. What is the cost per driver unit for the account inquiry activity?

2. What is the total cost for account inquiries in Dept. ABC?