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Webster Company provides the following ABC costinginformation: Activities Total Costs Activityminuscost drivers Account inquiry hours $250,000 10,000 hours Account billing lines $125,000 5,000,000 lines Account
Webster Company provides the following ABC costinginformation:
Activities | Total Costs | Activityminuscost 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 asfollows:
Department A | Department B | |
Account inquiry hours | 1,000 hours | 3,000 hours |
Account billing lines | 200,000 lines | 300,000 lines |
Account verification accounts | 10,000 accounts | 8,000 accounts |
Correspondence letters | 1,000 letters | 1,500 letters |
How much of the account inquiry cost will be assigned to DepartmentA?
A. $5,000 B. $75,000 C. $25,000 D. $250,000
How much of account verification costs will be assigned to DepartmentA?
A. $40,000 B. $25,000 C. $50,000 D. $10,000
How much of the account billing costs will be assigned to DepartmentB?
A. $7,500 B. $25,000 C. $12.500 D. $15,000
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