Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity−cost drivers Account inquiry $280,000 14,000 hours Account billing $350,000 7,000,000...

Extreme Manufacturing Company provides the following ABC costing information:

Activities	Total Costs	Activity−cost drivers
Account inquiry	$280,000	14,000 hours
Account billing	$350,000	7,000,000 lines
Account verification accounts	$93,750	50,000 accounts
Correspondence letters	$29,000	4,000 letters
Total costs	$752,750

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

	Department A	Department B
Account inquiry hours	2,100 hours	3,600 hours
Account billing lines	500,000 lines	350,000 lines
Account verification accounts	7,000 accounts	5,000 accounts
Correspondence letters	1,200 letters	1,600 letters

How much of the total costs will be assigned to Department A?

$85,075

$120,000

$118,825

$88,825

Jun 02, 2022

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