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Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Account inquiry $320,000 16,000 hours Account billing $330,000 6,000,000

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Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Account inquiry $320,000 16,000 hours Account billing $330,000 6,000,000 lines Account verification accounts $56,250 30,000 accounts Correspondence letters $50,000 8,000 letters Total costs $756,250 The above activities are used by Departments A and B as follows: Department A Account inquiry hours 2,400 hours Account billing lines 900.000 lines Department B 3,900 hours 750.000 lines O A. $78,000 B. $48,000 OC. $320,000 OD. $160,000 The above activities are used by Departments A and B as follows: Department A Account inquiry hours 2,400 hours Account billing lines 900,000 lines Account verification accounts 11,000 accounts Correspondence letters 1,000 letters Department B 3,900 hours 750,000 lines 9,000 accounts 1,400 letters How much of the account inquiry cost will be assigned to Department A? O A. $78,000 O B. $48,000 OC. $320,000 OD. $160,000

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