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Bean Brewers,Inc The Above Activities Are Carried Out at Two of Its

Question 127

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Bean Brewers,Inc.,a manufacturer of coffee makers,had the following activities,allocated costs,and allocation bases:  Activities  Allocated Costs  Allocation Base  Account inquiry (hours)  $67,0002000 hours  Account billing (lines)  $37,00018,000 lines  Account verification (accounts)  $10,00024,000 accounts  Correspondence (letters)  $12,0001600 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 67,000 & 2000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 37,000 & 18,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 10,000 & 24,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 12,000 & 1600 \text { letters } \\\hline\end{array} The above activities are carried out at two of its regional offices.
 Activities  Northeast Office  Midwest Office  Account inquiry (hours)  100 hours 250 hours  Account billing (lines)  16,000 lines 9000 lines  Account verification (accounts)  1200 accounts 600 accounts  Correspondence (letters)  30 letters 120 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 16,000 \text { lines } & 9000 \text { lines } \\\hline \text { Account verification (accounts) } & 1200 \text { accounts } & 600 \text { accounts } \\\hline \text { Correspondence (letters) } & 30 \text { letters } & 120 \text { letters } \\\hline\end{array} How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)


A) $225
B) $9000
C) $900
D) $4500

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