Reference no: EM132520786
Bill Cobb Corporation had the following activities, pooled costs for each activity, and allocation base for each activity: 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 company uses activity-based costing. The following activities are used by departments X and Y as follows: Account inquiry (hours) X=500 hours Y=800 hours, Account billing (lines) X=250,000 lines Y=200,000 lines, Account verification (accounts) X=2,000 accounts Y=1,000 accounts, Correspondence (letters) X=200 letters Y=1,000 letters
Question 1: How much of the correspondence cost will be assigned to Department X?
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