(2 of 2) Steve's Best Company has the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $280,000 14,000 hours Account billing $350,000 7,000,000 lines Account verification $93,750 50,000 accounts accounts Correspondence letters $29.000 4,000 letters Total costs $752,750 The above activities are used by Departments A follows: Department A Account inquiry hours 2,100 hours Account billing lines 500,000 lines Account verification 7,000 accounts accounts Correspondence letters 1,200 letters How much of the total costs will be assigned to Department A?
(2 of 2) Steve's Best Company has the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $280,000 14,000 hours Account billing $350,000 7,000,000 lines Account verification $93,750 50,000 accounts accounts Correspondence letters $29.000 4,000 letters Total costs $752,750 The above activities are used by Departments A follows: Department A Account inquiry hours 2,100 hours Account billing lines 500,000 lines Account verification 7,000 accounts accounts Correspondence letters 1,200 letters How much of the total costs will be assigned to Department A?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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