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Premium Company Provides the Following ABC Costing Information The Above Activities Are Used by Departments a and B

question 154

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Premium Company provides the following ABC costing information:
 Activities  Total Costs  Activity-cost drivers  Account inquiry $200,00010,000 hours  Account billing $140,0004,000,000 lines  Account verificationaccounts $75,00040,000 accounts  Correspondence letters $25,0004,000 letters  Total costs $440,000\begin{array} { l r c } \text { Activities } & \text { Total Costs } & \text { Activity-cost drivers } \\\text { Account inquiry } & \$ 200,000 & 10,000 \text { hours } \\\text { Account billing } & \$ 140,000 & 4,000,000 \text { lines } \\\text { Account verificationaccounts } & \$ 75,000 & 40,000 \text { accounts } \\\text { Correspondence letters } & \$ 25,000 & 4,000 \text { letters } \\\text { Total costs } & \$ 440,000 &\end{array} The above activities are used by Departments A and B as follows:
 Department A Department B Account inquiry hours 2,500 hours 4,000 hours  Account billing lines 400,000 lines 250,000 lines  Account verification accounts 10,000 accounts 8,000 accounts  Correspondence letters 1,200 letters 1,600 letters \begin{array} { l c c } & \text { Department } \mathrm { A } & \text { Department } \mathrm { B } \\\text { Account inquiry hours } & 2,500 \text { hours } & 4,000 \text { hours } \\\text { Account billing lines } & 400,000 \text { lines } & 250,000 \text { lines } \\\text { Account verification accounts } & 10,000 \text { accounts } & 8,000 \text { accounts } \\\text { Correspondence letters } & 1,200 \text { letters } & 1,600 \text { letters }\end{array}
-How much of the account inquiry cost will be assigned to Department A?


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Sherman Act

A foundational United States antitrust law aimed at maintaining competition by prohibiting monopolistic practices.

Restraint Of Trade

Actions or agreements that restrict competition or the free operation of the market, often illegal under antitrust laws.

Federal Trade Commission

A United States federal agency established to prevent unfair business practices and promote consumer protection.

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses, ensuring fair market practices.

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