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15. Bill Cobb Corporation had the following activities, traceable costs, and physical ow of driver units: Activities Traceable Costs Driver Units Account inquiry (hours) $400,000

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15. Bill Cobb Corporation had the following activities, traceable costs, and physical ow of driver units: Activities Traceable Costs Driver Units Account inquiry (hours) $400,000 5,000 Account billing (lines) 280,000 2,000,000 Account verication (accounts) 150,000 20,000 Correspondence (letters) 50,000 2,000 The above activities are used by departments X and Y as follows: Department X Department Y Account inquiry (hours) 500 hours 800 hours Account billing (lines) 250,000 lines 200,000 lines Account verication (accounts) 2,000 accounts 1,000 accounts Correspondence (letters) 200 letters 1,000 letters How much of the correspondence cost will be assigned to Department X using an activity based costing system? a. $25,000. b. $8,333. c. $5,000. (1. $20,000. e. $10,000

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