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QUESTION 12 Little Co. provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $320,000

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QUESTION 12 Little Co. provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $320,000 $200,000 $173,250 $24,000 $717,250 Activity-cost drivers 16,000 hours 4,000,000 lines 70,000 accounts 14,000 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 | 2,700 hours 900.000 lines 8,000 accounts 1.400 letters Department B 4,200 hours 750,000 lines 16,000 accounts 1,800 letters How much of the account inquiry cost will be assigned to Department A? $54,000 $320,000 $160,000 $84,000

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