Merlin Company provides the following ABC costing information:

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

Required:
a. How much of correspondence costs will be assigned to Department B?
b. How much of the total costs will be assigned to DepartmentA?

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Activities Account inquiry hours Account billing lines Account verification accounts Correspondence letters Total costs Total Costs Activity-cost drivers S200,000 10,000 ours $140,000 4,000,000 lines S75,000 S 25,000 4000 letters S440,000 40,000accounts Department A Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department B 2,000 hours 4,000 hours 200,000 ines 400,000 10,000 accounts 8,000 accounts 1,000 letters 1,600 letters