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Stark Inc. provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Total Costs Activity Cost Drivers $200,000 10,000

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Stark Inc. provides the following ABC costing information: Activities Account inquiry hours Account billing lines Account verification accounts Total Costs Activity Cost Drivers $200,000 10,000 hours $140,000 4,000,000 lines $75,000 40,000 accounts Correspondence letters 4,000 letters $25.000 $440,000 Total costs The above activities are used by Departments A and B as follows: Department A 2,000 hours 400,000 lines Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department B 4,000 hours 200,000 lines 10,000 accounts 8,000 accounts 1,000 letters 1,600 letters Round MOH rates to three (3) decimal points. Required: (a) How much of the account inquiry cost will be assigned to Department A? (3 points) (b) How much of the account billing cost will be assigned to Department A? [3 points) (d) How much of the correspondence costs will be assigned to Department A? (3 points) (e) How much of the total costs will be assigned to Department B? [2 points)

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