Q4/Mertens Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 $ 25,000 $440,000 Correspondence letters Total costs 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours Account billing lines 400,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of account verification costs will be assigned to Department A? A.$15,000 B.$18,750 C.$75,000 D.$5,000 4,000 hours 200,000 lines

Q4/Mertens Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 $ 25,000 $440,000 Correspondence letters Total costs 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours Account billing lines 400,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of account verification costs will be assigned to Department A? A.$15,000 B.$18,750 C.$75,000 D.$5,000 4,000 hours 200,000 lines

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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