Kerriman Company provides the following ABC costing information:ActivitiesAccount inquiry hoursAccount billing linesAccount verification accountsCorrespondence lettersTotal costsAccount inquiry hoursAccount billing linesAccount verification accountsCorrespondence lettersTotal Costs£400,000£280,000£150,000£50,000£880,000The above activities are used by Departments A and B as follows:Department A2,000 hours400,000 linesC.£224,000d. £880,00010,000 accounts1,000 lettersActivity-cost drivers10,000 hours4,000,000 linesHow much of the total costs will be assigned to Department A?a. £158,000b. £80,000E40,000 accounts4,000 lettersDepartment B4,000 hours200,000 lines8,000 accounts1,600 letters

Name: Kerriman Company provides the following ABC costing information:Activ
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Description: Kerriman Company provides the following ABC costing information:ActivitiesAccount inquiry hoursAccount billing linesAccount verification accountsCorrespondence lettersTotal costsAccount inquiry hoursAccount billing linesAccount verification accounts

The activity rate is calculated as the estimated activity costs divided by the activity usage. The…

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Kerriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Total Costs £400,000 £280,000 Account inquiry hours Account billing lines Account verification accounts Correspondence letters £150,000 Correspondence letters £50,000 Total costs £880,000 The above activities are used by Departments A and B as follows: Department A 2,000 hours 400,000 lines Activity-cost drivers 10,000 hours 4,000,000 lines 10,000 accounts 1,000 letters How much of the total costs will be assigned to Department A? 40,000 accounts 4,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters

Kerriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Total Costs £400,000 £280,000 Account inquiry hours Account billing lines Account verification accounts Correspondence letters £150,000 Correspondence letters £50,000 Total costs £880,000 The above activities are used by Departments A and B as follows: Department A 2,000 hours 400,000 lines Activity-cost drivers 10,000 hours 4,000,000 lines 10,000 accounts 1,000 letters How much of the total costs will be assigned to Department A? 40,000 accounts 4,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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