Merriamn Company provides the following ABC costing information:

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?

$80,000

$400,000

$160,000

None of the above

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