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9) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Account inquiry $420,000 Account billing $225,000 Account verification accounts $95,000 Correspondence letters

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9) Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Account inquiry $420,000 Account billing $225,000 Account verification accounts $95,000 Correspondence letters $46,000 Total costs $786,000 Activity-cost drivers 14,000 hours 5,000,000 lines 40,000 accounts 8,000 letters The above activities are used by Departments A and B as follows: Department Department B Account inquiry hours 2,900 hours 4,400 hours Account billing lines 600,000 lines 450,000lines Account verification accounts 12,000 accounts 10,000 accounts Correspondence letters 1,800 letters 2,200 letters How much of account verification costs will be assigned to Department A? A) $23,750 B) $28,500 C) $95,000 D) $47,500

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