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Youngblood Corporation Had the Following Activities, Traceable Costs, and Physical

Question 110

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Youngblood Corporation had the following activities, traceable costs, and physical flow of driver units:  Traceable  Physical Flow of  Activities  Costs  DriverUnits  Account inquiry (hours)  $8,000500 hours  Account billing(lines)  5,600200,000 lines  Account verification (accounts)  3,0002,000 accounts  Correspondence (letters)  1,000200 letters \begin{array}{llll}&\text { Traceable }&\text { Physical Flow of }\\\text { Activities }&\text { Costs }&\text { DriverUnits }\\\hline\text { Account inquiry (hours) } & \$ 8,000 & 500 \text { hours } \\\text { Account billing(lines) } & 5,600 & 200,000 \text { lines } \\\text { Account verification (accounts) } & 3,000 & 2,000 \text { accounts } \\\text { Correspondence (letters) } & 1,000 & 200 \text { letters }\end{array} The above activities are used by departments A and B as follows: AB Account inquiry (hours)  50 hours 80 hours  Account billing (lines)  25,000 lines 20,000 lines  Account verification ( accounts)  200 comtracts 100 comtracts  Corresp ondence (letters)  20 letters 100 letters \begin{array}{lll}&A&B\\\text { Account inquiry (hours) } & 50 \quad \text { hours } & 80 \text { hours } \\\text { Account billing (lines) } & 25,000 \text { lines } & 20,000 \text { lines }\\\text { Account verification ( accounts) }&200\text { comtracts }&100\text { comtracts }\\\text { Corresp ondence (letters) }&20\text { letters }&100\text { letters }\end{array} The correspondence cost assigned to Department B is:


A) $500
B) $100
C) $1,000
D) None of these answers is correct.

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