Tan Manufacturing Company provides the following activity-based costing (ABC) information:

 

       Activities                                        Total Costs         Activity-cost drivers

        Account inquiry                                 $311028                               15978 hours

        Account billing                                   $200280                                3943281 lines

        Account verification accounts           $173664                               68051 accounts

        Correspondence letters                    $23677                               3908 letters

       The above activities are used by Zhi Department and Zen Department as follows:

                                                                  Zhi Department        Zen Department

        Account inquiry hours                          2649 hours                      4088 hours

        Account billing lines                             894043 lines                750,000 lines

        Account verification accounts              7521 accounts               5990 accounts

        Correspondence letters                       1274  letters               1,800 letters

How much of the total costs of all the activities will be assigned to Zen Department?

Answer rating: 100% (QA)

A B E Calculation of Activity cost rate 2 3 Activity Total cost Activity ... View the full answer