Solution-How much of account inquiry cost assigned to

How much of account inquiry cost assigned to Department

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Reference no: EM132682603

Question - Webster Company provides the following ABC costing information:

Activities	Total Costs	Activity-cost drivers
Account inquiry hours	$250,000	10,000 hours
Account billing lines	$125,000	5,000,000 lines
Account verification accounts	$50,000	50,000 accounts
Correspondence letters	$25,000	5,000 letters
Total costs	$450,000

The above activities are used by Departments A and B as follows:

	Department A	Department B
Account inquiry hours	1,000 hours	3,000 hours
Account billing lines	200,000 lines	300,000 lines
Account verification accounts	10,000 accounts	8,000 accounts
Correspondence letters	1,000 letters	1,500 letters

Required -

a) How much of the account inquiry cost will be assigned to Department A?

b) How much of account verification costs will be assigned to Department A?

c) How much of the account billing costs will be assigned to Department B?

Reference no: EM132682603

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How much of account inquiry cost assigned to Department

Reference no: EM132682603

Reference no: EM132682603

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