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4. Morton Morton Company provides the following ABC costing information: Activities Account inquiry Total Costs $200,000 Activity-cost drivers 10,000 hours Account billing $140,000 Account
4. Morton Morton Company provides the following ABC costing information: Activities Account inquiry Total Costs $200,000 Activity-cost drivers 10,000 hours Account billing $140,000 Account verification $75,000 Correspondence letters $ 25,000 Total costs $440,000 4,000,000 billing lines 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,000 hours 400,000 lines 10,000 accounts 1,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters How much of the account inquiry cost will be assigned to Department A?
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