Allen Crabb Corporation had the following activities, traceable costs, and physical flow of driver units:
The above activities are used by departments X and Y as follows:

-How much of the account inquiry cost will be assigned to Department Y?
A) $400,000
B) $40,000
C) $64,000
D) $104,000

Question

Allen Crabb Corporation had the following activities, traceable costs, and physical flow of driver units:
  The above activities are used by departments X and Y as follows:
 
-How much of the account inquiry cost will be assigned to Department Y?
A) $400,000 
B) $40,000 
C) $64,000 
D) $104,000

Quizplus · Accepted Answer

The account inquiry cost is assigned to Department Y based on the percentage of physical flow of driver units for that department.

Total physical flow of driver units = 25,000

Department X: 
Physical flow of driver units = 15,000 
Percentage of physical flow = 15,000/25,000 = 0.6 
Traceable cost assigned to Department X = $40,000

Department Y: 
Physical flow of driver units = 10,000 
Percentage of physical flow = 10,000/25,000 = 0.4 
Account inquiry cost assigned to Department Y = 0.4 * $160,000 = $64,000

Therefore, the correct answer is C) $64,000.

Allen Crabb Corporation Had the Following Activities, Traceable Costs, and Physical