Hinckley & Granger Company Had the Following Activities,estimated Indirect Activity

question 109

Multiple Choice

Hinckley & Granger Company had the following activities,estimated indirect activity costs,and allocation bases: $\begin{array} { | l | r | r | } \hline \text { Activities } & \text { Indirect Activity Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 75,000 & 2,500 \\\hline \text { Account billing (lines) } & \$ 45,000 & 30,000 \\\hline \text { Account verification (accounts) } & \$ 18,000 & 24,000 \\\hline \text { Correspondence (letters) } & \$ 40,000 & 4,000 \\\hline\end{array}$ Hinckley & Granger uses activity based costing.
The above activities are used by Departments P and Q as follows:
$\begin{array} { | l | r | r | } \hline & \text { Department P } & \text { Department Q } \\\hline \text { Account inquiry (hours) } & 300 & 600 \\\hline \text { Account billing (lines) } & 8,000 & 6,000 \\\hline \text { Account verification (accounts) } & 5,000 & 4,500 \\\hline \text { Correspondence (letters) } & 500 & 600 \\\hline\end{array}$
- How much of the account inquiry cost will be assigned to Department Q?

• A)$ 6,000
• B)$ 9,000
• C)$18,000
• D)$ 6,000.

Determine the savings amount required per period to achieve a future financial goal using different rates of return.

Understand and calculate the present value of growing and non-growing annuities for long-term planning.

Compare and analyze the financial differences between immediate and deferred annuities using the concept of present value.

Evaluate investment opportunities and personal financial decisions using the present value of future cash flows.

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Definitions:

Control/Punishment

Methods or strategies implemented to regulate behavior and administer penalties for violations of laws or rules.

Treatment and Punishment

This term refers to approaches within the criminal justice system focusing on rehabilitation or retribution.

Ethical Issues

Complex problems or situations that require a moral response, often involving a difficult choice.

Probation and Parole Officers

Probation and Parole Officers are law enforcement professionals who supervise offenders granted probation instead of jail time or those released from prison with conditions to follow.