Extreme Manufacturing Company provides the following ABC costing information:

The above activities are used by Departments A and B as follows:

How much of the account billing cost will be assigned to Department B?
A) $220,000
B) $110,000
C) $24,750
D) $33,000

Question

Extreme Manufacturing Company provides the following ABC costing information:

The above activities are used by Departments A and B as follows:

How much of the account billing cost will be assigned to Department B?
A) $220,000 
B) $110,000 
C) $24,750 
D) $33,000

Quizplus · Accepted Answer

Billing costs - Department B = ($220,000 ÷ 4,000,000) × 450,000 = $24,750

Extreme Manufacturing Company Provides the Following ABC Costing Information