Fran Ferry company had the following activities, pooled costs, and physical flow of diver units. The...

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Fran Ferry company had the following activities, pooled costs, and physical flow of diver units. The company uses activity-based costing. Activities Pooled costs Physical flow of driver units 5,000 hours Account inquiry(hours) Account billing (lines) Account verification (accounts) Correspondence (letters) $25,000 $200,000 $140,000 $5,000 Account inquiry (hours) The above activities are used by departments A and B as: A 1,000 Account billing (lines) 200,000 Account verification (accounts) 5,000 Correspondence (letters) 2,000,000 lines 20,000 accounts 500 2,000 letters B 2,000 100,000 4,000 800 How much of the account billing cost will be assigned to Department B? Fran Ferry company had the following activities, pooled costs, and physical flow of diver units. The company uses activity-based costing. Activities Pooled costs Physical flow of driver units 5,000 hours Account inquiry(hours) Account billing (lines) Account verification (accounts) Correspondence (letters) $25,000 $200,000 $140,000 $5,000 Account inquiry (hours) The above activities are used by departments A and B as: A 1,000 Account billing (lines) 200,000 Account verification (accounts) 5,000 Correspondence (letters) 2,000,000 lines 20,000 accounts 500 2,000 letters B 2,000 100,000 4,000 800 How much of the account billing cost will be assigned to Department B?

Answer rating: 100% (QA)

Account Inquiry Hours Cost allocated to B 20005000 x 200000 80000 Account ... View the full answer