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? Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Activity-cost drivers 13,000 hours Total Costs $390.000 Account billing $210,000 6,000,000 lines
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Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Activity-cost drivers 13,000 hours Total Costs $390.000 Account billing $210,000 6,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $36,000 6,000 letters Total costs $711,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,800 hours Account billing lines Account verification accounts Correspondence letters 12,000 accounts 1,000 letters 900,000 lines 10,000 accounts 1,400 letters 4,300 hours 750,000 lines How much of the account inquiry cost will be assigned to Department A? OA. $195,000 B. $390,000 OC. $84,000 OD. $129,000
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