Extreme Manufacturing Company provides the following ABC costing information:

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

How much of account verification costs will be assigned to Department A?
A) $23,750
B) $28,500
C) $95,000
D) $47,500

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 account verification costs will be assigned to Department A?
A) $23,750 
B) $28,500 
C) $95,000 
D) $47,500

Quizplus · Accepted Answer

Account verification costs - Department A = ($95,000/ 40,000) × 12,000 = $28,500

Extreme Manufacturing Company Provides the Following ABC Costing Information