How much account billing cost assigned to department b

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Question - Fran Ferry Company had the following activities, pooled costs, and physical flow of driver units. The company uses activity minus-based costing.

Activities

Pooled Costs

Physical Flow of Driver Units

Account inquiry (hours)

$200,000

5,000 hours

Account billing (lines)

$140,000

2,000,000 lines

Account verification (accounts)

$5,000

20,000 accounts

Correspondence (letters)

$25,000

2,000 letters

The above activities are used by departments A and B as follows:


A

B

Account inquiry (hours)

1,000

2,000

Account billing (lines)

200,000

100,000

Account verification (accounts)

5,000

4,000

Correspondence (letters)

500

800

How much of the account billing cost will be assigned to Department B?

Reference no: EM132109812

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