Premium Company provides the following ABC costing information:ActivitiesTotal CostsActivity-cost driversAccount inquiry$200,0006,500 hoursAccount billing$140,000650,000 linesAccount verification accounts$75,00020,000accountsCorrespondence letters$
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Premium Company provides the following ABC costing information:ActivitiesTotal CostsActivity-cost driversAccount inquiry$200,0006,500 hoursAccount billing$140,000650,000 linesAccount verification accounts$75,00020,000accountsCorrespondence letters$ 25.0002,800lettersTotal costs$440.000The above activities are used by Departments A and B as follows:ActivitiesDepartment ADepartment BAccount inquiry hours2,500 hours4,000 hoursAccount billing lines400,000 lines250,000 linesAccount verification accounts12,000accounts8,000 accountsCorrespondence letters 1,200letters1,600 lettersHow much of account verification costs will be assigned to Department A?
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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