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Premium Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $200,000 6,500 hours Account billing $140,000 650,000 lines Account verification

Premium Company provides the following ABC costing information:

Activities

Total Costs

Activity-cost drivers

Account inquiry

$200,000

6,500 hours

Account billing

$140,000

650,000 lines

Account verification accounts

$75,000

20,000 accounts

Correspondence letters

$ 25,000

2,800 letters

Total costs

$440,000

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

Activities

Department A

Department B

Account inquiry hours

2,500 hours

4,000 hours

Account billing lines

400,000 lines

250,000 lines

Account verification accounts

12,000 accounts

8,000 accounts

Correspondence letters

1,200 letters

1,600 letters

How much of account verification costs will be assigned to Department A?

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