Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs S This question: 25 point(s) possible Total Costs $140,000 $105,000 $173,250 $39,000 $457,250 Activity-cost drivers 14,000 hours 7,000,000 lines 70,000 accounts 6,000 letters The above activities are used by Departments A and B as follows: Department A 5455L OA. $104,125 OB. $89,125 OC. $141,450 OD. $84,175 Department B

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
Question
Extreme Manufacturing Company provides the following ABC costing information:
Activities
Account inquiry
Account billing
Account verification accounts
Correspondence letters
Total costs
S
This question: 25 point(s) possible
Total Costs
$140,000
$105,000
$173,250
$39,000
$457,250
Activity-cost drivers
14,000 hours
7,000,000 lines
70,000 accounts
6,000 letters
The above activities are used by Departments A and B as follows:
Department A
5455L
OA. $104,125
OB. $89,125
OC. $141,450
OD. $84,175
Department B
Transcribed Image Text:Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs S This question: 25 point(s) possible Total Costs $140,000 $105,000 $173,250 $39,000 $457,250 Activity-cost drivers 14,000 hours 7,000,000 lines 70,000 accounts 6,000 letters The above activities are used by Departments A and B as follows: Department A 5455L OA. $104,125 OB. $89,125 OC. $141,450 OD. $84,175 Department B
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