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Extreme Manufacturing Company provides the following ABC cos…

Posted byAnonymous July 22, 2021December 14, 2023

Questions

Extreme Mаnufаcturing Cоmpаny prоvides the fоllowing ABC costing information:           Activities                                          Total Costs                Activity-cost drivers         Account inquiry                               $750,000                           15,000 hours         Account billing                                 $250,000                       5,000,000 lines         Account verification accounts       $173,250                     70,000 accounts         Correspondence letters                    $42,000                            7,000 letters                Total costs                              $1,215,250                                              The above activities are used by Departments A and B as follows:                                                                            Department A                       Department B         Account inquiry hours                              2,000 hours                           3,500 hours         Account billing lines                               900,000 lines                        750,000 lines         Account verification accounts            9,000 accounts                     7,000 accounts         Correspondence letters                          1,200  letters                         1,600 letters   How much of the total costs will be assigned to Department B?

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Tags: Accounting, Basic, qmb,

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