11) Extreme Manufacturing Company provides the following ABC costing information:ActivitiesTotal CostsdriversActivity-cost$390,000$275,000$130,500$22,000$817,500The above activities are used by Departments A and Bas follows:Account inquiryAccount billing13,000 hours5,000,000 linesAccount verification accounts60,000 accountsCorrespondence lettersTotal costs4,000 lettersDepartment A2,500 hoursDepartment B4,000 hoursAccount inquiry hoursAccount billing linesAccount verification accounts800,000 lines650,000 lines9,000 accounts7,000 accountsCorrespondence letters2,000 letters2,400 lettersHow much of correspondence costs will be assigned to Department A?A) $22,000B) $49,500C) $11,000D) $11.242

In this question we need to calculate how much of correspondence costs will be assigned to…

11) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs drivers Activity-cost $390,000 $275,000 $130,500 $22,000 $817,500 The above activities are used by Departments A and Bas follows: Account inquiry Account billing 13,000 hours 5,000,000 lines Account verification accounts 60,000 accounts Correspondence letters 4,000 letters Total costs Account inquiry hours Account billing lines Account verification accounts Department A 2,500 hours Department B 4,000 hours 650,000 lines 800,000 lines 9,000 accounts 7,000 accounts Correspondence letters 2,000 letters 2,400 letters How much of correspondence costs will be assigned to Department A? A) $22,000 B) $49,500 C) $11,000 D) $11.242

11) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs drivers Activity-cost $390,000 $275,000 $130,500 $22,000 $817,500 The above activities are used by Departments A and Bas follows: Account inquiry Account billing 13,000 hours 5,000,000 lines Account verification accounts 60,000 accounts Correspondence letters 4,000 letters Total costs Account inquiry hours Account billing lines Account verification accounts Department A 2,500 hours Department B 4,000 hours 650,000 lines 800,000 lines 9,000 accounts 7,000 accounts Correspondence letters 2,000 letters 2,400 letters How much of correspondence costs will be assigned to Department A? A) $22,000 B) $49,500 C) $11,000 D) $11.242

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $536,250 are allocated on the basis of machine hours. The Accounting Department's costs of $151,200 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $240,000 and $440,000, respectively. Maintenance Accounting A B Machine hours 755 95 2,400 350 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Multiple Choice $578,400. O $422,000. $284,000. $468,000.
1.Smith Manufacturing has five activity cost pools and two products (a budget toaster oven and a deluxe toaster oven). Information is presented below: Activity. Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 130,000 297,000 1,000,000 1,600,000 300,000 Cost Drivers by Product Budget 600 500 150,000 1,200,000 550 Deluxe 400 400 100,000 800,000 450 Instructions Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.
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8. Lisa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240 160 Number of employees 10 20 40 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? Select one: a. $60,000 b. $32,000 c. $12,800 d. $24,000 e. $16,000
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