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Mertens Company provides the following ABC costing information: PLS CALCULATE AND EXPLAN!!!! THx!!!!! Mertens Company provides the following ABC costing information: Activities Account inquiry hours
Mertens Company provides the following ABC costing information:PLS CALCULATE AND EXPLAN!!!! THx!!!!!
Mertens Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters $200,000 S140,000 $75,000 S 25,000 $440,000 Activitv-cost driver 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters Total costs The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters DenartmentA 2,000 hours 400,000 lines 10,000 accounts 1,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters a. Calculate the cost allocation rates. Activitv Allocation Rate nt inquiry nt billing nt verification Correspondence b. Allocate the activity costs to the departments. Allocated costs Activitv Department A Department B nt inquiry nt billing nt verification rrespondence Total costsStep by Step Solution
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