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XYZ Company provides the following activity-based costing information: Total Costs Activity-cost drivers Activities Account inquiry $320,000 16,000 hours Account billing $160,000 3,200,000 lines Account
XYZ Company provides the following activity-based costing information: Total Costs Activity-cost drivers Activities Account inquiry $320,000 16,000 hours Account billing $160,000 3,200,000 lines Account verification costs $138,600 60,000 accounts Correspondence letters $19,200 4,000 letters Total costs $637,800 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,700 hours 1,800 hours Account billing lines 820,000 lines 630,000 lines Account verification accounts 23,000 accounts 24,000 accounts Correspondence letters 1,500 letters 2,000 letters How much of the account verification costs will be assigned to Department B? $70,775 $54,000 $55,440 $53,130
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