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Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $240,000 $210,000
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $240,000 $210,000 $158,000 $67,500 $675,500 Activity cost drivers 12,000 hours 7,000,000 lines 80,000 accounts 9,000 letters The above activities are used by Departments A and B as follows: Department A 2,500 hours Department B 4,000 hours Account inquiry hours O A. $15,800 O B. $158,000 O C. $79,000 OD. $11,850 Account billing lines Account verification accounts Correspondence letters 500,000 lines 8,000 accounts 1,400 letters 350,000 lines 6,000 accounts 1,800 letters How much of account verification costs will be assigned to Department A
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