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 verification costs will be assigned to Department P?
A) $450
B) $3,375
C) $5,000
D) $3,750

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 verification costs will be assigned to Department P?
A) $450 
B) $3,375 
C) $5,000 
D) $3,750

Quizplus · Accepted Answer

D) ($18,000/24,000) × 5000 accounts = $3,750

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