Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...

Question

Question

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities In

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Cost per driver unit for the account inquiry activity= Indirect cost relating to account inquiry / allocation base relating to account inquiry

Cost per driver unit =85300/4000=21.33 per hour.

Add a comment

Answer 2

Similar Homework Help Questions

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Potter & Weasley uses activity based costing. Indirect Activity Costs $85,500 $57,000 $35,250 $73,000 Allocation Base 3700 31,000 28,500 11,000 The above activities are used by Departments P and Q as follows: Department Q Department P 800 Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 400 10,000 6,000 1.000 4,000...
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Account inquiry (hours) $86,400 Account billing (lines) $53,000 Account verification (accounts) $36,250 Correspondence (letters) $76,000 Potter & Weasley uses activity based costing. Allocation Base 2400 32,000 25,500 11,000 The above activities are used by Departments P and Q as follows: Department PL Department Account inquiry (hours) 500 600 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000...
Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Accountinquiry...

Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Accountinquiry (hours) $60,000 Account billing (lines) $30,000 Account verification $15,000 (acounts) Correspondence $10,000 letters) Allocation Base 2,000 hours 20,000 lines 20,000 accounts 1,000 letters The above activities are used by departments Pand Q Department P Accountinquiry (hours) 100 hours Account billing (lines) 10,000 lines Account verification (accounts) 1,000 accounts Correspondence (letters) 50 letters Department 200 hours 7,000 lines 600 accounts 100 letters How much of...

Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry...

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...

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...
31) Flannery Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation...

31) Flannery Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $79,000 $31,000 $12,000 $ 11,000 Allocation Base 3000 hours 17,000 lines 25,000 accounts 1400 letters The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 120 hours 10,000 lines 1500 accounts 60 letters...

30) Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation...

30) Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Allocated Costs Account inquiry (hours) $68,000 Account billing (lines) $34,000 Account verification (accounts) $18,000 Correspondence (letters) $10,000 Allocation Base 2600 hours 17,000 lines 20,000 accounts 1400 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 100 hours 250 hours Account billing (lines) 16,000 lines 8000 lines Account verification (accounts) 1900 accounts...
Premium Company provides the following ABC costing information: Activities

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 Total Costs Activity dash– cost drivers...

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 &nb

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 ...

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...

Homework Answers