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C Secure https/www.mathxl.com/Student/PlayerTest.aspx?testid-1807321638centerwinayes Edwin Reyes CC 2311/HE22 Cost Acct 1 (Spring 18) es This Question: 2 pts t: Exam 2 - ACC 2311 Time Remaining: 01 12 of 27 (7 complete) This Tes Extreme Manufacturing Company provides the following ABC costing information Activities Account inquiry Account billing Total Costs $420,000 $75,000 $123,750 $58,000 $676,750 Activity-cost drivers 14,000 hours 5,000,000 lines 50,000 accounts 8,000 letters Account verification aocounts Correspondence letters Total costs The above activiies are used by Departments A and B as follows: O A $114,000 B. $89,000 c- $210,000 O D. $420,000

Explanation / Answer

correct option is "B" -69000

Overhead rate for accounts enquiry: 420000/14000 = $ 30 per hours

accounts enquiry cost allocated to department A : 30 * 2300 = 69000

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