2.(TCO 1) Merriamn Company provides the following ABC costing information:

Activities	Total Costs	Activity-cost drivers
Account inquiry hours	$400,000	10,000 hours
Account billing lines	$280,000	4,000,000 lines
Account verification accounts	$150,000	40,000 accounts
Correspondence letters	$ 50,000	4,000 letters
Total costs	$880,000

The above activities are used by Department A and B as follows:

	Department A	Department B
Account inquiry hours	2,000 hours	4,000 hours
Account billing lines	400,000 lines	200,000 lines
Account verification accounts	10,000 accounts	8,000 accounts
Correspondence letters	1,000 letters	1,600 letters

How much of the inquiry cost will be assigned to Department A?

(Points : 5)

$80,000
$400,000
$160,000
None of the above