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Extreme Manufacturing Company provides the following ABC costing​ information: Activities Total Costs Activity dash cost drivers Account inquiry $ 110 comma 000 11 comma 000 hours Account billing $ 245 comma 000 7 comma 000 comma 000 lines Account verification accounts $ 108 comma 750 50 comma 000 accounts Correspondence letters $ 38 comma 500 7 comma 000 letters Total costs $ 502 comma 250 The above activities are used by Departments A and B as​ follows: Department A Department B Account inquiry hours 2 comma 200 hours 3 comma 700 hours Account billing lines 600 comma 000 lines 450 comma 000 lines Account verification accounts 8 comma 000 accounts 6 comma 000 accounts Correspondence letters 1 comma 600 letters 2 comma 000 letters How much of account verification costs will be assigned to Department​ A?

Respuesta :

letmeanswer

$8,800 of account verification costs will be assigned to Department​ A

Solution:

The costs audit will guarantee that cost accounting reports adhere to the standards, policies, methods and goals of cost accounting.

The cost accounting documents such as consistency of cost statements, cost recording, expense analysis, expense statistics, costing documentation and costing technologies must be checked.

Correspondence costs - Department A

                                  = ($38,500 ÷ 7,000) × 1,600

                                  = $8,800

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