Answer the Following Questions Using the Information Below:
Katoomba Company

question 198

Multiple Choice

Answer the following questions using the information below:
Katoomba Company provides the following ABC costing information:
$$\begin{array}{l}\begin{array} { l c l } \text { Activities } & \text { Total Costs } & \text { Activity-cost Drivers } \\\text { Account inquiry hours } & \$ 800000 & 20000 \text { hours } \\\text { Account billing lines } & \$ 560000 & 8000 \text { 000 lines } \\\text { Account verification accounts } & \$ 300000 & 80000 \text { accounts } \\\text { Correspondence letters } & \$ 100000 & 8000 \text { letters } \\\quad \text { Total costs } & \$ 1760000 &\end{array}\\\\\text { The above activities are uæed by Departments } \mathrm { A } \text { and } \mathrm { B } \text { as follows: }\\\\\begin{array} { l l l } & \text { Department A } & \text { Department B } \\\text { Account inquiry hours } & 2000 \text { hours } & 8000 \text { hours } \\\text { Account billing lines } & 400 \text { o00 lines } & 200000 \text { lines } \\\text { Account verification accounts } & 20000 \text { accounts } & 8000 \text { accounts } \\\text { Correspondence letters } & 1000 \text { letters } & 1600 \text { letters }\end{array}\end{array}$$
-How much of the total costs will be assigned to Department A?

• A)$195 500
• B)$228 000
• C)$880 000
• D)$80 000

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Definitions:

Intersecting Lines

Lines that meet or cross at one point, sharing exactly one point in common.

Visual Cliff

A psychological experimental apparatus that uses a visual illusion to examine perception and understanding of depth in infants.

Depth Perception

The visual ability to perceive the world in three dimensions and the distance of an object.

Retinal Disparity

The slight difference in the two retinal images due to the angle from which each eye views an object, contributing to depth perception.