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de Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs The above activities
de Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters How much of the account billing cost will be assigned to Department B? Total Costs $260,000 $220,000 $142,500 $45,000 $667,500 Department A 3,000 hours 600,000 lines 15,000 accounts 1,400 letters Activity-cost drivers 13,000 hours 4,000,000 lines 60,000 accounts 6,000 letters Department B 4,500 hours 450,000 lines 13,000 accounts 1,800 letters 40 e 447 ha How much of the account billing cost will be assigned to Department B? OA. $220,000 OB. $110,000 OC. $24,750 OD. $33,000
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