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Use the information below to answer the following question(s). Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The
Use the information below to answer the following question(s). Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units. The company uses activity-based costing. Pooled Physical Flow of Activities Costs Driver Units Account inquiry (hours) $400,000 5,000 Account billing (lines) $280,000 2,000,000 Account verification (accounts) $150,000 20,000 Correspondence (letters) $50,000 2.000 The above activities are used by departments X and Y as follows: Y Account inquiry (hours) 500 hours 800 hours Account billing (lines) 250,000 lines 200,000 lines Account verification (accounts) 2,000 accounts 1,000 accounts Correspondence (letters) 200 letters 1,000 letters Question: How much of the correspondence cost will be assigned to Department X? $50,000 $10,000 $5,000 $25,000 $8,333 Question: How much of the account verification cost will be assigned to Department Y? $7,500 $100,000 $10,000 $15,000 $50,000
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