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Question S: (7 marks) Veriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Total

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Question S: (7 marks) Veriman Company provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Total Costs $400,000 $280,000 $150,000 $ 50,000 $880,000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters Total costs The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters 2.000 hours 400,000 lines 10,000 accounts 1,000 letters Department B 4,000 hours 200,000 lines 8,000 accounts 1,600 letters a. How much of the account inquiry cost will be assigned to Department A? b. How much of account verification costs will be assigned to Department A? How much of the total costs will be assigned to Department A? c

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