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Merriman Company provides the following ABC costing information: Total Costs Activity cost drivers 10,000 hours 4,000,000 lines Activities Account inquiry hours Accounting billing lines Account
Merriman Company provides the following ABC costing information: Total Costs Activity cost drivers 10,000 hours 4,000,000 lines Activities Account inquiry hours Accounting billing lines Account verification accounts Correspondence letters Total costs The above activities used by Departments A and B as follows: $400,000 $280,000 $150,000 $50,000 40,000 accounts 4,000 letters $880,000 Dept. A. Dept. B 4,000 hours 200,000 lines Account inquiry hours Accounting billing lines Account verification accounts 10,000 accounts Correspondence letters How much of the account verification costs will be assigned to Dept. A.? 2,000 hours 400,000 lines 8,000 accounts 1,600 letters 1,000 letters a. $150,000 O b. $37,500 . $30,000 o d. $10,000
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