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Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity cost drivers Account inquiry $140,000 14,000 hours Account billing $280,000 7,000,000 lines

Extreme Manufacturing Company provides the following ABC costing information:

Activities

Total Costs

Activity

cost

drivers

Account inquiry

$140,000

14,000 hours

Account billing

$280,000

7,000,000 lines

Account verification accounts

$98,750

50,000 accounts

Correspondence letters

$17,250

3,000 letters

Total costs

$536,000

The above activities are used by Departments A and B as follows:

Department A

Department B

Account inquiry hours

2,900 hours

4,400 hours

Account billing lines

800,000 lines

650,000 lines

Account verification accounts

11,000 accounts

9,000 accounts

Correspondence letters

1,200 letters

1,600 letters

How much of the total costs will be assigned to Department B?

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