Use the information below to answer the following question(s):
Hinckley & Granger Company had the following activities, estimated indirect activity costs, and allocation bases:

Hinckley & Granger uses activity-based costing.
The above activities are used by Departments P and Q as follows:

-How much of the account inquiry cost will be assigned to Department Q?
A) $8,000
B) $9,000
C) $18,000
D) $6,000

Question

Use the information below to answer the following question(s):
Hinckley & Granger Company had the following activities, estimated indirect activity costs, and allocation bases:
  
Hinckley & Granger uses activity-based costing.
The above activities are used by Departments P and Q as follows:
 
-How much of the account inquiry cost will be assigned to Department Q?
A) $8,000 
B) $9,000 
C) $18,000 
D) $6,000

Quizplus · Accepted Answer

C) ($75,000/2,500) × 600 hours = $18,000

Use the Information Below to Answer the Following Question(s)