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Friendly Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Total costs Total Costs $250,000
Friendly Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Total costs Total Costs $250,000 $125.000 $50,000 $ 25.000 $450,000 Activity-Cost Drivers 10,000 hours 5,000,000 lines 50,000 accounts 5,000 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 1,000 hours 200,000 lines 10,000 accounts 1,000 letters Department B 3,000 hours 300,000 lines 8,000 accounts 1,500 letters How much of total overhead costs will be assigned to Department A
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