Merriman Company provides the following ABC costing informationActivitiesAccount inquiry hoursAccount billing linesAccount verification accountsCorrespondence lettersTotal costsTotal Costs$400,000$280,000$150,000$ 50.000S880.000Activity-cost drivers10,000 hours4,000,000 lines40,000 accounts4,000 lettersThe above activities are used by Departments A and Bas follows:Account inquiry hoursAccount billing linesAccount verification accountsDepartment A2,000 hours400,000 lines10,000 accounts1,000 lettersDepartment B4,000 hours200,000 lines8,000 accounts1,600 lettersCorrespondence lettersHow much of the account inquiry cost will be assigned to Department A?

Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Memriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verifilcation accounts Correspondence letters Total costs Total Costs $400,000 $280,000 $150,000 $ 50.000 S880.000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters The above activities are used by Depurtments A and Bas follows Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,000 hours 400,000 lines 10,000 accounts 1,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters How much of the account inquiry cost will be assigned to Department A?

Memriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verifilcation accounts Correspondence letters Total costs Total Costs $400,000 $280,000 $150,000 $ 50.000 S880.000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters The above activities are used by Depurtments A and Bas follows Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,000 hours 400,000 lines 10,000 accounts 1,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters How much of the account inquiry cost will be assigned to Department A?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Merriman Company provides the following ABC costing information
Activities
Account inquiry hours
Account billing lines
Account verification accounts
Correspondence letters
Total costs
Total Costs
$400,000
$280,000
$150,000
$ 50.000
S880.000
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 Bas follows:
Account inquiry hours
Account billing lines
Account verification accounts
Department A
2,000 hours
400,000 lines
10,000 accounts
1,000 letters
Department B
4,000 hours
200,000 lines
8,000 accounts
1,600 letters
Correspondence letters
How much of the account inquiry cost will be assigned to Department A?

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