Pitt Jones Company had the following activities, allocated costs, and allocation bases:

\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.

\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

Which of the Following Pertains to a Just-In-Time Production System

Multiple Choice