Potter & Weasley Company had the following activities,estimated indirect activity costs,and allocation bases:

Potter & Weasley uses activity based costing.
The above activities are used by Departments P and Q as follows:

What is the cost per driver unit for the account verification activity?
A)$1.75
B)$1.50
C)$9.56
D)$8.00

Question

Potter & Weasley Company had the following activities,estimated indirect activity costs,and allocation bases:

Potter & Weasley uses activity based costing.
The above activities are used by Departments P and Q as follows:

What is the cost per driver unit for the account verification activity?
A)$1.75 
B)$1.50 
C)$9.56 
D)$8.00

Quizplus · Accepted Answer

B)$38,250 / 25,500 = $1.50

Potter & Weasley Company Had the Following Activities,estimated Indirect Activity