Potter & Weasley Company Had the Following Activities, Estimated Indirect

question 57

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:
What is the cost per driver unit for the account verification activity? (Round all answers to two decimal places.)

• A)$1.87
• B)$1.67
• C)$7.85
• D)$10.00

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Definitions:

Services Provided

The performance of work, assistance, or activities for the benefit of another individual or organization.

Expense Accounts

These accounts record the consumption of assets or services that occur during the operation of a business, leading to a decrease in owner's equity.

Revenue Accounts

Accounts in the general ledger that track the income generated by a company from its normal business operations.

Gain On Sale

The profit realized when a capital asset is sold for a higher price than its purchase price.