Question 12
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 Casts $60,000$30,000$15,000$10,000 Allocation Bare 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
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How much of the correspondence cost will be assigned to the Northeast Office?
A) $500
B) $1,200
C) $2,500
D) $800
Correct Answer:

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