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?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
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![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda869df5-01d2-4a6a-a946-415268979e8f%2Fb5857429-35f8-41f7-a683-cc6c11a14c6f%2F8stbyl_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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