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 correspondence cost will be assigned to Department P?
A) $5,000
B) $6,000
C) $375
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 correspondence cost will be assigned to Department P?
A) $5,000 
B) $6,000 
C) $375 
D) $3,750

Quizplus · Accepted Answer

A) ($40,000/4,000) × 500 letters = 5,000

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