Pitt Jones Company Had the Following Activities, Allocated Costs, and Allocation
Question 113
Question 113
Multiple Choice
Pitt Jones Company had the following activities, allocated costs, and allocation bases: Artivitias Accaunt inquiry (hours) Account billing (lines) Afcaunt verification (accounts) Correspandence (letters) Allocated Costs $60,000$30,000$15,000$10,000 Allocation Base 2,000 hours 20,000 lines 20,000 accounts 1,000 letters The above activities are carried out at two of their regional offices. Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 100 hours 10,000 lines 1,000 accounts 50 letters Midwest Office 200 hours 7,000 lines 600 accounts 100 letters - How much of the account inquiry cost will be assigned to the Midwest Office?
A) $2,000 B) $6,500 C) $3,000 D) $6,000
Correct Answer:
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