Answer the following questions using the information below:
Mertens Company provides the following ABC costing information:
The above activities are used by Departments A and B as follows:

-How much of the account inquiry cost will be assigned to Department A?
A)$40,000
B)$200,000
C)$80,000
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Mertens Company provides the following ABC costing information:
  The above activities are used by Departments A and B as follows:
 
-How much of the account inquiry cost will be assigned to Department A?
A)$40,000 
B)$200,000 
C)$80,000 
D)None of these answers are correct.

Quizplus · Accepted Answer

The account inquiry cost is assigned to Department A based on the number of inquiries made by the department. Department A made 40% of the inquiries, so it will be assigned 40% of the cost, which is $40,000.

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