Premium Company provides the following ABC costinginformation:ActivitiesCostsAccount inquiry$200,000Account billing$140,000Activity-cost drivers25,000Account verification accounts$75,000Correspondence lettersTotal costsA4,000,000 lines10,000 hours40,000 accountsDepartment BAccount inquiry hourshoursAccount billing lines250,000 linesSelect one:4,000 lettersThe above activities are used by Departments A and Bas follows:4,000 hoursAccount verification accountsaccounts8,000 accountsCorrespondence lettersa. $8,750b. $8,500c. $8,250d. $8,5401,600 lettersTotal$Documents$440,000Department2,50010,000lettersHow much of the account billing cost will be assigned toDepartment B400,000 lines1,200

Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…

Premium Company provides the following ABC costing information: Activities Costs Account inquiry $200,000 Account billing $140,000 Activity-cost drivers 25,000 Account verification accounts $75,000 Total costs 4,000,000 lines Correspondence letters 10,000 hours Account billing lines 250,000 lines 40,000 accounts A Department B Account inquiry hours hours Select one: 4,000 letters The above activities are used by Departments A and B as follows: 4,000 hours Account verification accounts accounts 8,000 accounts Correspondence letters a. $8,750 1,600 letters b. $8,500 c. $8,250 d. $8,540 Total $ Documents $440,000 letters How much of the account billing cost will be assigned to Department B Department 2,500 10,000 400,000 lines 1,200

Premium Company provides the following ABC costing information: Activities Costs Account inquiry $200,000 Account billing $140,000 Activity-cost drivers 25,000 Account verification accounts $75,000 Total costs 4,000,000 lines Correspondence letters 10,000 hours Account billing lines 250,000 lines 40,000 accounts A Department B Account inquiry hours hours Select one: 4,000 letters The above activities are used by Departments A and B as follows: 4,000 hours Account verification accounts accounts 8,000 accounts Correspondence letters a. $8,750 1,600 letters b. $8,500 c. $8,250 d. $8,540 Total $ Documents $440,000 letters How much of the account billing cost will be assigned to Department B Department 2,500 10,000 400,000 lines 1,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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