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 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 Department A? Group of answer choices $5,000 $250,000 $75,000 $25,000
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 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 Department A?
Group of answer choices
$5,000
$250,000
$75,000
$25,000
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