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Merriman Company provides the following ABC costing information: Activities Total Costs Activity cost drivers Account inquiry hours $400,000 10,000 hours Accounting billing lines $280,000 4,000,000
Merriman Company provides the following ABC costing information:
Activities | Total Costs | Activity cost drivers |
---|---|---|
Account inquiry hours | $400,000 | 10,000 hours |
Accounting billing lines | $280,000 | 4,000,000 lines |
Account verification accounts | $150,000 | 40,000 accounts |
Correspondence letters | 4,000 letters | |
Total costs | $880,000 |
The above activities used by Departments A and B as follows:
Dept. A | Dept. B | |
---|---|---|
Account inquiry hours | 2,000 hours | 4,000 hours |
Accounting 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 total cost will be assigned to Dept. A.?
Select one:
a.$880,000
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b.$158,000
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c.$224,000
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d.$80,000
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Clear my choice
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