Answer:
Cost assigned to Deparment B is $112,000
Explanation:
In order to calculate the cost assigned to Department B, we will take each amount divide it by their respective drivers and multiply by the driver assigned to Department B. Then we will add up all the relevant cost to determine the total cost assigned to Department B. As shown below:
Account Inquiry Hours = $200,000 / 10,000 hours x 4,000 hours
= $80,000
Account Billing Lines = $140,000 / 4,000,000 lines x 200,000 lines
= $7,000
Account Verification = $75,000 / 40,000 accounts x 8,000 accounts
= $15,000
Correspondence Letter = $25,000 / 4,000 letters x 1,600 letters
= $10,000
Total Cost = 80,000 + 7,000 + 15,000 + 10,000
= $112,000
