Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,700
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases:
Activities | Indirect Activity Costs | Allocation Base |
Account inquiry (hours) | $85,700 | 3000 |
Account billing (lines) | $60,000 | 31,000 |
Account verification (accounts) | $39,250 | 25,500 |
Correspondence (letters) | $72,000 | 12,000 |
Potter & Weasley uses activity based costing. The above activities are used by Departments P and Q as follows:
Department P | Department Q | |
Account inquiry (hours) | 400 | 800 |
Account billing (lines) | 10,000 | 6000 |
Account verification (accounts) | 6,000 | 7,000 |
Correspondence (letters) | 1,000 | 2,000 |
What is the cost per driver unit for the account verification activity? (Round all answers to two decimal places.)
$1.54 | ||
$6.54 | ||
$6.00 | ||
$1.94 |
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