Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers 25,000 hours Account inquiry $750,000 Account billing $250,000 100,000 lines Account verification accounts $173.250 70,000 accounts Correspondence letters $84.000 7.000 letters The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 3,000 hours 3,500 hours Account billing lines 700,000 lines 750,000 lines Account verification accounts 9,000 accounts 7,000 accounts Correspondence letters 2,200 letters 1.600 letters Using ABC costing method, calculate the total cost allocated to department A.
