Tan Manufacturing Company provides the following activity-based costing (ABC) information: Activities Total Costs Activity-cost drivers Account inquiry
Question:
Tan Manufacturing Company provides the following activity-based costing (ABC) information:
Activities Total Costs Activity-cost drivers
Account inquiry $316222 15786 hours
Account billing $200,000 4,000,000 lines
Account verification $171828 69756 accounts
Correspondence letters $24,000 4,000 letters
The above activities are used by Zhi Department and Zen Department as follows:
Zhi Department Zen Department
Account inquiry hours 2696 hours 4034 hours
Account billing lines 900,000 lines 750,000 lines
Account verification 7910 accounts 5947 accounts
Correspondence letters 1,400 letters 1,800 letters
How much of the account verification cost will be assigned to Zen Department?
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura