Armidale Company Ltd (ALC) 2022 books contain the following information (budgeted): Activities Activity Cost Relevant cost...

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Armidale Company Ltd (ALC) 2022 books contain the following information (budgeted): Activities Activity Cost Relevant cost driver Account Inquiry costs $198,000 Cost of Billing accounts (billing lines) $138,000 $73,000 $23,000 $432,000 Verification of accounts cost Cost of correspondence Total costs Division X ALC operates in following two main divisions; each division uses the 'activities' (actual) as noted in the respective column below: 9,000 inquiry hours 3,999,000 billing lines 2,500 400,500 Division Y 39,000 verification accounts 3,000 posted letters Inquiry hours (inquiry hours) Billing accounts (billing lines) Verification (verification accounts) 10,500 Letters sent out (posted letters) 1,500 Division X manager's yearly retainer is $130,000 while Division Y manager receives an annual salary of $120,000. The difference in the salary is due to the difference in the level of expertise and experience required to manage each division. Required: Work out (round to nearest dollar) the following: 1. The part of the ALC's total cost of inquiry that will be charged to the Division X? 2. The part of the ALC's total cost of billing accounts that will be charged to the Division Y? 3. The part of the ALC's total cost incurred in the verification of accounts that will be charged to the Division X? 4. The part of the ALC's total cost of all letters posted to clients that will be charged to the Division Y? 5. The part of the ALC's total cost that will be charged to the Division X? 6. The part of the ALC's total cost that will be charged to the Division Y? 4,500 200,500 8,500 2,100 Armidale Company Ltd (ALC) 2022 books contain the following information (budgeted): Activities Activity Cost Relevant cost driver Account Inquiry costs $198,000 Cost of Billing accounts (billing lines) $138,000 $73,000 $23,000 $432,000 Verification of accounts cost Cost of correspondence Total costs Division X ALC operates in following two main divisions; each division uses the 'activities' (actual) as noted in the respective column below: 9,000 inquiry hours 3,999,000 billing lines 2,500 400,500 Division Y 39,000 verification accounts 3,000 posted letters Inquiry hours (inquiry hours) Billing accounts (billing lines) Verification (verification accounts) 10,500 Letters sent out (posted letters) 1,500 Division X manager's yearly retainer is $130,000 while Division Y manager receives an annual salary of $120,000. The difference in the salary is due to the difference in the level of expertise and experience required to manage each division. Required: Work out (round to nearest dollar) the following: 1. The part of the ALC's total cost of inquiry that will be charged to the Division X? 2. The part of the ALC's total cost of billing accounts that will be charged to the Division Y? 3. The part of the ALC's total cost incurred in the verification of accounts that will be charged to the Division X? 4. The part of the ALC's total cost of all letters posted to clients that will be charged to the Division Y? 5. The part of the ALC's total cost that will be charged to the Division X? 6. The part of the ALC's total cost that will be charged to the Division Y? 4,500 200,500 8,500 2,100

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Here are the answers to your questions The part of the ALCs total cost of inquiry that will be charg... View the full answer