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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 $600,000 $125,000
Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $600,000 $125,000 $148,500 $27,000 $900,500 Activity. - cost drivers 15,000 hours 5,000,000 lines 60,000 accounts 4,000 letters The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,300 hours 700,000 lines 6,000 accounts 1,800 letters Department B 3,800 hours 550,000 lines 4,000 accounts 2,200 letters How much of the total costs will be assigned to Department A
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