Extreme Manufacturing Company provides the following ABC costing information:
Activities Total Costs Activity-cost drivers
Account inquiry $320,000 16,000 hours
Account billing $200,000 4,000,000 lines
Account verification accounts $173,250 70,000 accounts
Correspondence letters $24,000 4,000 letters
Total costs $717,250
The above activities are used by Departments A and B as follows:
Department A Department B
Account inquiry hours 2,700 hours 4,200 hours
Account billing lines 950,000 lines 750,000 lines
Account verification accounts 8,500 accounts 6,500 accounts
Correspondence letters 1,400 letters 1,800 letters
How much of the account billing cost will be assigned to Department A?
How much of the account verification accounts cost will be assigned to Department B?
Departmental costs= Total costs/Activity driver costs
How much of the account billing cost will be assigned to Department A?
Account billing= $200000/4000000= $0.05 per line
Account billing cost of Department A= 950000 lines*$0.05 per line= $47500
How much of the account verification accounts cost will be assigned to Department B?
Account verification= $173250/70000= $2.475 per account
Account verification of Department B= 6500 accounts*$2.475 per account= $16087.5
Extreme Manufacturing Company provides the following ABC costing information: Activities &nb
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $320,000 $200,000 $175,250 S24.000 $717.250 Activity-cost drivers 16,000 hours 4,000,000 lines 70,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,700 hours 900,000 lines 8,000 accounts 1,400 letters Department B 4,200 hours 750,000 lines 6,000 accounts 1,800...
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activityminus−cost drivers Account inquiry $420,000 14,000 hours Account billing $220,000 4,000,000 lines Account verification accounts $173,250 70,000 accounts Correspondence letters $13,500 2,000 letters Total costs $826,750 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,700 hours 4,200 hours Account billing lines 700,000 lines 550,000 lines Account verification accounts 9,000 accounts 7,000 accounts Correspondence letters 1,000 letters 1,400...
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $220,000 4,000,000 lines Account verification accounts $182,000 80,000 accounts Correspondence letters $25,000 4,000 letters Total costs $747,000 The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,200 hours 600,000 lines 5,000 accounts 1,000 letters Department B 3,700 hours 450,000 lines 3,000 accounts 1,400...
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $320,000 $140,000 $118,750 $49,500 $628,250 Activity. - cost drivers 16,000 hours 4,000,000 lines 50,000 accounts 9,000 letters The above activities are used artments A and B as follows: Department A Account inquiry hours Department B 4,500 hours 3,000 hours O A. $124,000 OB. $131,300 OC. $158,500 O D. $138,750 Account billing lines Account verification accounts Correspondence letters...
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity dash– cost drivers Account inquiry $420,000 14,000 hours Account billing $140,000 7,000,000 lines Account verification accounts $148,500 60,000 accounts Correspondence letters $32,500 5,000 letters Total costs $741,000 The above activities are used by Departments A and B as follows: A B Account inquiry hours 2,200 hours 3,700 hours Account billing lines 800,000 lines 650,000 lines Account verification accounts 7,000 accounts 5,000 accounts Correspondence letters 1,000 letters 1,400...
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $600,000 $125,000 $148,500 $27,000 $900,500 Activity. - cost drivers 15,000 hours 5,000,000 lines 60,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,300 hours 700,000 lines 6,000 accounts 1,800 letters Department B 3,800 hours 550,000 lines 4,000...
Premium Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $200,000 10,000 hours Account billing $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $ 25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,500 hours 4,000 hours Account billing lines 400,000 lines 250,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,200 letters 1,600 letters 1- How...
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $240,000 $210,000 $158,000 $67,500 $675,500 Activity – cost drivers 12,000 hours 7,000,000 lines 80,000 accounts 9,000 letters The above activities are used by Departments A and B as follows: Department A 2,500 hours Department B 4,000 hours Account inquiry hours O A. $15,800 O B. $158,000 O C. $79,000 OD. $11,850 Account billing lines Account verification accounts...
Extreme Manufacturing Company provides the following ABC costing information Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs 5600,000 $220.000 $198.000 $21,000 51,039.000 Activity - cost drivers 12 000 hours 4,000,000 lines 80,000 accounts 3.000 letters The above activities are used by Departments A and B as follows Department Department B O A $110.000 OB. $19.250 OC. $27,500 OD. 5220.000 Click to select your answer Type here to search $1,039.000 Correspondence letters Total costs The...
One Total Costs Extreme Manufacturing Company provides the following ABC costing information Activities Account inquiry Account biling Account verification accounts Correspondence letters Total costs The above activities are used by Departments A and B as follows $360,000 $125,000 505250 $30.000 $580.250 Activity-condes 12.000 hours 5,000,000 Ines 30.000 50 Department Det O A 5101,075 OB. $129.783 OC. $145,075 OD 596,725 Correspondence letters Total costs $30.000 $530,250 The above activities are used by Departments A and B as follows: Account inquiry hours...