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Merriman Company provides the following ABC costing information: Activities Total Costs Activity cost drivers Account inquiry hours $400,000 10,000 hours Accounting billing lines $280,000 4,000,000

Merriman Company provides the following ABC costing information:

Activities Total Costs Activity cost drivers
Account inquiry hours $400,000 10,000 hours
Accounting billing lines $280,000 4,000,000 lines
Account verification accounts $150,000 40,000 accounts
Correspondence letters 4,000 letters
Total costs $880,000

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

Dept. A Dept. B
Account inquiry hours 2,000 hours 4,000 hours
Accounting billing lines 400,000 lines 200,000 lines
Account verification accounts 10,000 accounts 8,000 accounts
Correspondence letters 1,000 letters 1,600 letters

How much of the total cost will be assigned to Dept. A.?

Select one:

a.$880,000

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b.$158,000

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c.$224,000

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d.$80,000

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