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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 $320,000 $140,000
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $320,000 $140,000 $118,750 $49,500 $628,250 Activity. - cost drivers 16,000 hours 4,000,000 lines 50,000 accounts 9,000 letters The above activities are used artments A and B as follows: Department A Account inquiry hours Department B 4,500 hours 3,000 hours O A. $124,000 OB. $131,300 OC. $158,500 O D. $138,750 Account billing lines Account verification accounts Correspondence letters 400,000 lines 8,000 accounts 1,600 letters 250,000 lines 6,000 accounts 2,000 letters How much of the total costs will be assigned to Department B
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