Question

One Total Costs Extreme Manufacturing Company provides the following ABC costing information Activities Account inquiry Accou

Correspondence letters Total costs $30.000 $530,250 The above activities are used by Departments A and B as follows: Account
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Answer #1

Answer : A $101,075

total cost assigned to department A

particular calculation amount
account inquiry (36000/12000)*2000 60,000
account billing (125000/50000000)*500000 12,500
account verification (65250/30000)*9000 19,575
correspondence letter (30000/5000)*1500 9,000
total cost 101,075
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