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What amount of purchasing department cost

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Bernacke Corp. is instituting an activity-based costing project in its tenperson purchasing department. Annual departmental overhead costs are $731,250. Because finding the best supplier takes the majority of effort in the department, most of the costs are allocated to this activity area. Many purchase orders are received in a single shipment.

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A What amount of purchasing department cost should be assigned to this product?
B If 100 units of the product are manufactured during the year, what is the purchasing department cost per unit? Round your answer to the nearest cent.
C If purchasing department costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this product? Round your answer to the nearest cent

Reference no: EM13693968

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