Malloy Company,a Manufacturer of Small Appliances,had the Following Activities,allocated Costs,and
Question 127
Question 127
Multiple Choice
Malloy Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $77,000$31,000$14,000$14,000 Allocation Base 2,800 hours 15,000 lines 29,000 accounts 1,000 letters The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 100 hours 16,000 lines 1,800 accounts 50 letters Midwest Office 300 hours 8,000 lines 600 accounts 110 letters How much of the account inquiry cost will be assigned to the Midwest Office? (Round any intermediate calculations to two decimal places and your final answer to the nearest dollar. )
A) $16,500 B) $77,000 C) $27,500 D) $8,250
Correct Answer:
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