Premium Company provides the following ABC costing information Activities Total Costs Activity-cost drivers Account inquiry 5200,000 10,000 hours Account billing $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters 525.000 4.000 letters Total costs $440.000 The above activities are used by Departments A and B as follows Department A Department Account inquiry hours 2.500 hours 4,000 hours Account billing lines 400,000 lines 250,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,200 letters 1,600 letters How much of the total costs will be assigned to Department A? O a. 590,750 O b. 590,650 O c. $90.250 O d. 390 350 Tiscara Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of 15 per direct labor-how. The following data are obtained from the accounting records for June 2014 Direct materials $440,000 Direct labor (3.500 hours $11/hour) 38,500 Indirect labor 15,000 Plant facility rent 50,000 Depreciation on plant machinery and equipment 35.000 Sales commissions 10,000 Administrative expenses 25,000 The actual amount of manufacturing overhead costs incurred in June 2014 totals Q a $80,000 O b. $110,000 OC. $100,000 O d. $278.500