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Pitt Jones Company Had the Following Activities, Allocated Costs, and Allocation

Question 113

Multiple Choice

Pitt Jones Company had the following activities, allocated costs, and allocation bases:
 Artivitias  Allocated Costs  Allocation Base  Accaunt inquiry (hours)  $60,0002,000 hours  Account billing (lines)  $30,00020,000 lines  Afcaunt verification (accounts)  $15,00020,000 accounts  Correspandence (letters)  $10,0001,000 letters \begin{array} { | l | r | r | } \hline \text { Artivitias } & \text { Allocated Costs } & { \text { Allocation Base } } \\\hline \text { Accaunt inquiry (hours) } & \$ 60,000 & 2,000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 30,000 & 20,000 \text { lines } \\\hline \text { Afcaunt verification (accounts) } & \$ 15,000 & 20,000 \text { accounts } \\\hline \text { Correspandence (letters) } & \$ 10,000 & 1,000 \text { letters } \\\hline\end{array}
The above activities are carried out at two of their regional offices.
 Northeast Office  Midwest Office  Account inquiry (hours)  100 hours 200 hours  Account billing (lines)  10,000 lines 7,000 lines  Account verification (accounts)  1,000 accounts 600 accounts  Correspondence (letters)  50 letters 100 letters \begin{array}{|l|r|r|}\hline& \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 200 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 7,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,000 \text { accounts } & 600 \text { accounts } \\\hline\text { Correspondence (letters) } & 50 \text { letters } & 100 \text { letters }\\\hline\end{array}
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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

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