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QUESTION Premium Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $330.000 11,000 hours Accounting 560.000 4,000,000 lines Account verification accounts 356.250 30,000 accounts Correspondence letters $20.250 3000 letters Total costs $466 500 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2200 hours 3700 hours Account biling lines 600,000 lines 450,000 lines Account verification accounts 7000 accounts 5000 accounts Correspondence letters 1700 letters 2100 letters How much of the account inquiry cost will be assigned to Department A? $111,000 $330,000 $165,000 $66.000 QUESTION 4 Teecorp Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor $384.000 8000 hours Gas $28.000 7000 gallons Invoices $130.000 6500 invoices Total costs 3542.000 The above activities used by their three departments are: Lawn Department Bush Department Department Labor 2900 hours 1300 hours Gas 1800 gallons 1000 gallons Invoices 1600 invoices 300 invoices How much of the labor cost will be assigned to the Bush Department? $139.200 $182.400 588,075 $62.400 Plowing 3800 hours 4200 gallons 4600 invoices

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