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QUESTIONS Phoenix, Inc. uses activity-based costing and had the following estimated activity data for its Billing Department for the year: Activities Estimated Costs Estimated Activity
QUESTIONS Phoenix, Inc. uses activity-based costing and had the following estimated activity data for its Billing Department for the year: Activities Estimated Costs Estimated Activity Account inquiry (number of hours) $73,000 2.100 hours Account billing (number of lines) $42.000 16,000 lines Account verification (number of accounts) $19.000 29,000 accounts Correspondence (number of letters) $13,000 1,400 letters During the month, the Northeast Office verified 1,800 accounts and the Midwest Office verified 650 accounts. What is the activity rate that would be used to assign account verification costs to these offices? (Round your answer to the nearest cent.) O A $4.56 OB $0.66 C. $9.29 D. $34.76 QUESTION 8 Sacramento, Inc. has received a bid from a customer to buy 15.000 of the firm's widgets. The firm's estimates show that the average cost per unit for this bid will be $500. The firm uses cost-based pricing and adds a 20% markup on total costs. What total price will Sacramento ask for the entire order? O A $9,000,000 OB. $1,500,000 C. $7,500,000 D. $6,000,000
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