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Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Activity - cost drivers 11,000 hours Total Costs $110,000 Account billing Correspondence
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Activity - cost drivers 11,000 hours Total Costs $110,000 Account billing Correspondence letters $315,000 7,000,000 lines Account verification accounts $159,250 70,000 accounts $40,250 7,000 letters Total costs $624,500 The above activities are used by Departments A and B as follows: Department A Account inquiry hours Account billing lines 2,700 hours 700,000 lines Department B 4,200 hours Account verification accounts Correspondence letters 13,000 accounts 2,000 letters 550,000 lines 11,000 accounts 2,400 letters How much of the total costs will be assigned to Department A? (Do not round intermediary calculations and round final calculations to the nearest whole dollar.) A. $137,800 B. $99,575 C. $114,575 D. $95,025
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