Homework Answers
Ans. Option 3rd $24,750
*Working Notes:
*Calculation for activity rate of account billing cost pool :
Activity rate = Account billing cost / Expected account billing lines
= $220,000 / 4,000,000
= $0.055 per line
*Calculation for account billing cost assigned to department B :
Cost assigned = Activity rate * Activity of Department B
= $0.055 * 450,000
= $24,750
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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 Activityminus−cost drivers Account inquiry...
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 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 Account inquiry Account billing Account verification...
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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 $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 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 $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...
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 ...
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 $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...
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...
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...
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 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 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 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...
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...
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