Potter & Weasley Company Had the Following Activities, Estimated Indirect

question 154

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)$6455
• B)$3727
• C)$3227
• D)$1859

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Definitions:

Real Wages

Income from labor, corrected for inflation to reflect the real buying capability.

Nominal Wages

Wages paid to labor in current currency terms, without adjustment for inflation.

Industrially Advanced

Describes economies that have a significant level of development and industrialization, often characterized by high per capita incomes and widespread infrastructure.