Question
Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hours Account billing lines $280,000 4,000,000 lines
Merriamn Company provides the following ABC costing information:
Activities | Total Costs | Activity-cost drivers |
Account inquiry hours | $400,000 | 10,000 hours |
Account billing lines | $280,000 | 4,000,000 lines |
Account verification accounts | $150,000 | 40,000 accounts |
Correspondence letters | $ 50,000 | 4,000 letters |
Total costs | $880,000 |
|
The above activities are used by Department A and B as follows:
| Department A | Department B |
Account inquiry hours | 2,000 hours | 4,000 hours |
Account billing lines | 400,000 lines | 200,000 lines |
Account verification accounts | 10,000 accounts | 8,000 accounts |
Correspondence letters | 1,000 letters | 1,600 letters |
How much of the account billing cost will be assigned to Department B? (
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