options

1. 25,000 2. 2,50,000 3. 5,000 4. 75,000

Webster Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $250,000 10,000 hours Account billing lines $125,000 5,000,000 lines Account verification accounts $50,000 50,000 accounts Correspondence letters $ 25,000 5,000 letters Total costs $450.000 The above activities are used by Departments A and B as follows: Department Department B Account inquiry hours Account billing lines Account verification accounts Correspondence letters 1,000 hours 3,000 hours 200,000 lines 300,000 Vines 10.000 8.000 accounts accounts 1000 letters 1.500 letters How much of the account inquiry cost will be assigned to Department A? Select one A. 525.000 B. $250,000 55.000