11) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs drivers Activity-cost $390,000 $275,000 $130,500 $22,000 $817,500 The above activities are used...


11) Extreme Manufacturing Company provides the following ABC costing information:<br>Activities<br>Total Costs<br>drivers<br>Activity-cost<br>$390,000<br>$275,000<br>$130,500<br>$22,000<br>$817,500<br>The above activities are used by Departments A and Bas follows:<br>Account inquiry<br>Account billing<br>13,000 hours<br>5,000,000 lines<br>Account verification accounts<br>60,000 accounts<br>Correspondence letters<br>Total costs<br>4,000 letters<br>Department A<br>2,500 hours<br>Department B<br>4,000 hours<br>Account inquiry hours<br>Account billing lines<br>Account verification accounts<br>800,000 lines<br>650,000 lines<br>9,000 accounts<br>7,000 accounts<br>Correspondence letters<br>2,000 letters<br>2,400 letters<br>How much of correspondence costs will be assigned to Department A?<br>A) $22,000<br>B) $49,500<br>C) $11,000<br>D) $11.242<br>

Extracted text: 11) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs drivers Activity-cost $390,000 $275,000 $130,500 $22,000 $817,500 The above activities are used by Departments A and Bas follows: Account inquiry Account billing 13,000 hours 5,000,000 lines Account verification accounts 60,000 accounts Correspondence letters Total costs 4,000 letters Department A 2,500 hours Department B 4,000 hours Account inquiry hours Account billing lines Account verification accounts 800,000 lines 650,000 lines 9,000 accounts 7,000 accounts Correspondence letters 2,000 letters 2,400 letters How much of correspondence costs will be assigned to Department A? A) $22,000 B) $49,500 C) $11,000 D) $11.242

Jun 10, 2022
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