Test: Interim Test 2 Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Total Costs - Activity cost drivers 14,000 hours $280,000 Account billing $385,000 7,000,000 lines Account verification accounts $95,000 40,000 accounts Correspondence letters $14,000 2,000 letters Total costs $774,000 The above activities are used by Departments A and B as follows: Department A Account inquiry hours Account billing lines 2,500 hours 800.000 lines Department B 4,000 hours 650,000 lines Que $95,00 $14,000 40,000 accounts 2,000 letters $774,000 Correspondence 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 Department A 2,500 hours 800,000 lines 6,000 accounts 1,400 letters How much of correspondence costs will be assigned to Department A? OA. $14,000 OB. $10,108 C. $9,800 OD. $42,000 Department B 4,000 hours 650,000 lines 4,000 accounts 1,800 letters