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Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square

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Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,750 17,250 Number of employees 1,120 480 Sales $350,000 $1,750,000 If total rent expense of $180,000 is allocated on the basis of square footage, the amount allocated to the Large Department would be $129,175 $129,275 $129,375 $129,475 Question 15 (2 points) Premium Company provides the following ABC costing information Activities Total Costs Activity cost drivers Accountingui $2001000 10.000 hours Account billing $120000 400000 lines Accountinguts 5.000.000 accounts Premium Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $200,000 10,000 hours Account billing $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $ 25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,500 hours 4,000 hours Account billing lines 400,000 lines 250,000 Tines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1.200 letters 1.600 letters How much of the total costs will be assigned to Department ? 1590, 350 590.250 59065

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