XYZ Company provides the following activity-based costing information:
Activities
Total Costs Activity-cost drivers
Account inquiry
$320,000
16,000 hours
Account billing
$160,000
3,200,000 lines
Account verification costs
$138,600
60,000 accounts
Correspondence letters
$19,200
4,000 letters
Total costs
$637,800
The above activities are used by Departments A and B as follows:
Department A Department B
Account inquiry hours
2,700 hours
1,800 hours
Account billing lines
820,000 lines
630,000 lines
Account verification accounts 23,000 accounts 24,000 accounts
Correspondence letters
1,500 letters
2,000 letters
How much of the account verification costs will be assigned to Department B?
? $70,775
? $54,000
? $55,440
? $53,130
