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6 (4 points) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $220,000
6 (4 points) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $220,000 4,000,000 lines Account verification $182,000 80,000 accounts accounts Correspondence $25,000 4,000 letters letters Total costs $747,000 The above activities are used by Departments A and B as follows: Department Department B A Account inquiry hours 2,200 hours 3,700 hours Account billing lines 600,000 lines 450,000 lines Account verification 5,000 3,000 accounts accounts accounts Correspondence letters 1,000 letters 1,400 letters How much of the account billing cost will be assigned to Department B
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