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1) Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $390,000
1) Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $390,000 $210,000 $75,000 $36.000 $711,000 Activity-cost drivers 13,000 hours 6,000,000 lines 40,000 accounts 6,000 letters The above activities are used by Departments A and B as follows: Department A 2,800 hours 900,000 lines 12,000 accounts 1,000 letters Department B 4,300 hours 750,000 lines 10,000 accounts 1,400 letters Account inquiry hours Account billing lines Account verification accounts Correspondence letters. How much of the account inquiry cost will be assigned to Department A?
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