Potter & Weasley Company Had the Following Activities, Estimated Indirect

question 198

Multiple Choice

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Potter & Weasley 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)$16,000
• B)$9,000
• C)$8,000
• D)$1,500

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Definitions:

5th Wheel

A pivoting plate attached to a vehicle's chassis (like those on semi-trucks) that enables the attachment and swivel motion of a trailer or similar component.

Locking Mechanism

A device or system designed to prevent movement or separation by securing components in place, commonly used in various types of machinery and equipment.

Drawbar Eye

The coupling eye that engages to either a pintle hook or the shank below a heavy-duty ball hitch assembly.

A-train Combination

A specific truck and trailer arrangement where a standard tractor pulls a semi-trailer which is connected to a "pup" trailer by a converter dolly, used to increase cargo capacity.