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 total costs will be assigned to Department B?
A)$79,000
B)$40,000
C)$112,000
D)$440,000

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 total costs will be assigned to Department B?
A)$79,000 
B)$40,000 
C)$112,000 
D)$440,000

Quizplus · Accepted Answer

To determine the cost assigned to Department B, we need to add up the cost of each activity used by Department B: 
Activity 1: $60,000 * 20% = $12,000 
Activity 2: $175,000 * 50% = $87,500 
Activity 3: $35,000 * 40% = $14,000 
Activity 4: $50,000 * 80% = $40,000

Total cost assigned to Department B = $12,000 + $87,500 + $14,000 + $40,000 = $153,500

Therefore, the best choice is C.

Answer the Following Questions Using the Information Below