Dickerson Corporation Had the Following Activities, Traceable Costs, and Physical
Question 41
Question 41
Multiple Choice
Dickerson Corporation had the following activities, traceable costs, and physical flow of driver units: Activities Acc ount inquiry (hours) Acc ount billing (lines) Account verification (accounts) Correspondence (letters) Traceable Costs $10,0005,6003,0001,000 Physical Flow of Driver Units 500 hours 200,000 lines 2,000 accounts 200 letters The above activities are used by departments A and B as follows: Acc ount inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) A 50 hours 25,000 lines 200 contracts 20 letters B 80 hours 20,000 lines 100 contracts 100 letters The cost per driver unit for the account inquiry activity is:
A) $5.00 B) $20.00 C) $0.028 D) $1.50
Correct Answer:
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