Webster Company provides the following $ A B C $ costing information:
The above activities are used by Departments $ A $ and $ B $ as follows:
-How much of the account inquiry cost will be assigned to Department A?
A)$5,000
B)$25,000
C)$75,000
D)$250,000

Question

Webster Company provides the following $ A B C $ costing information: 
The above activities are used by Departments $ A $ and $ B $ as follows: 
-How much of the account inquiry cost will be assigned to Department A?
A)$5,000 
B)$25,000 
C)$75,000 
D)$250,000

Quizplus · Accepted Answer

To calculate the amount of account inquiry cost assigned to Department A, we need to multiply the cost per activity by the number of activities used by Department A. 
Account inquiry cost assigned to Department A= $25,000 (i.e., 5,000*10) 
Therefore, the correct answer is B.

Webster Company Provides the Following ABC A B C ABC Costing Information: the Above Activities Are Used by Departments

Webster Company Provides the Following $A B C$ Costing Information:
the Above Activities Are Used by Departments