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In: Accounting

Ruby Company follows activity-based budgeting. From the information given below, calculate the total activity cost of...

Ruby Company follows activity-based budgeting. From the information given below, calculate the total activity cost of the company. Activity description Activity driver Cost per unit of driver Amount of driver Processing mail Number of clients $120 $75 Paying bills Number of bills $ 2.5 $10,000 Investigating Number of new hires $110 $75 Writing reports Number of clients $150 $75 a. $52,500 b. $52,800 c. $53,500 d. $53,200

Solutions

Expert Solution

Correct Answer (C )

$        53,500.00

Calculation

Activity description

Activity driver

Cost per unit of driver

Amount of driver

Activity Cost

Processing mail

Number of clients

$                             120.00

75

$    9,000.00

Paying bills

Number of bills

$                                  2.50

10000

$ 25,000.00

Investigating

Number of new hires

$                             110.00

75

$    8,250.00

Writing reports

Number of clients

$                             150.00

75

$ 11,250.00

Total Activity Cost

$ 53,500.00

ekkarill92 answered 2 years ago
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