Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Solve using excel 1. How much of the account inquiry cost will be assigned to Department A? 2. How much of the account billing cost
Solve using excel
Mertens Company provides the following ABC costing information: Activities Total Costs Account inquiry hours $200,000 Account billing lines $140,000 Account verification accounts $75,000 Correspondence letters $ 25,000 Total costs $440,000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account 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 1. How much of the account inquiry cost will be assigned to Department A?
2. How much of the account billing cost will be assigned to Department B?
3. How much of the total costs will be assigned to Department A?
4. How much of the total costs will be assigned to Department B?
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