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BUDI Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Account inquiry $130,000 13,000 hours Account biling $300,000

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BUDI Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Account inquiry $130,000 13,000 hours Account biling $300,000 6,000,000 lines Account verification accounts $99,000 40,000 accounts Correspondence letters $23,000 4,000 letters Total costs $552,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2.000 hours 3,500 hours Account biling lines 900.000 lines 750.000 lines A $37.500 OB$150.000 C. $45.000 OD $300,000 ventication accounts Correspondence letters Total costs $99,000 $23,000 $552,000 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Department A Account inquiry hours 2,000 hours Account billing lines 900,000 lines Account verification accounts 13,000 accounts Correspondence letters 1,100 letters Department B 3,500 hours 750,000 lines 11,000 accounts 1,500 letters How much of the account billing cost will be assigned to Department B? O A. $37,500 B. $150,000 C. $45,000 D. $300,000

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