Merriamn Company provides the following ABC costing information:
| Activities |
Total Costs |
Activity-cost drivers |
| Account inquiry hours |
$400,000 |
10,000 hours |
| Account billing lines |
$280,000 |
4,000,000 lines |
| Account verification accounts |
$150,000 |
40,000 accounts |
| Correspondence letters |
$ 50,000 |
4,000 letters |
| Total costs |
$880,000 |
|
The above activities are used by Department A and B as follows:
| |
Department A |
Department B |
| Account inquiry hours |
2,000 hours |
4,000 hours |
| Account billing lines |
400,000 lines |
200,000 lines |
| Account verification accounts |
10,000 accounts |
8,000 accounts |
| Correspondence letters |
1,000 letters |
1,600 letters |
How much of the inquiry cost will be assigned to Department A?