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Extreme Manufacturing Company provides the following ABC costing information Total Costs Activity cost drivers Activities $520,000 Account inquiry 13,000 hours Account verification accounts $118 750
Extreme Manufacturing Company provides the following ABC costing information Total Costs Activity cost drivers Activities $520,000 Account inquiry 13,000 hours Account verification accounts $118 750 50 000 accounts 9.000 letters Correspondence letters $58,500 Total costs s907.250 The above activities are used by Departments A and B as follows: Department A Department B 3,800 hours Account inquiry hours 2,300 hours Account billing lines 800,000 lines 650,000 lines unts 5,0 3,0 Correspondence lottere 1 a00 Jetters 300 letters How much of the total costs will be assigned to Deepartment B? OA. $207575 O B. $193.575 $200 475 D. $222.463
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