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Malloy Company,a Manufacturer of Small Appliances,had the Following Activities,allocated Costs,and

Question 127

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Malloy Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases:  Activities  Allocated Costs  Allocation Base  Account inquiry (hours)  $77,0002,800 hours  Account billing (lines)  $31,00015,000 lines  Account verification (accounts)  $14,00029,000 accounts  Correspondence (letters)  $14,0001,000 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 77,000 & 2,800 \text { hours } \\\hline \text { Account billing (lines) } & \$ 31,000 & 15,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 14,000 & 29,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 14,000 & 1,000 \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 300 hours  Account billing (lines)  16,000 lines 8,000 lines  Account verification (accounts)  1,800 accounts 600 accounts  Correspondence (letters)  50 letters 110 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 300 \text { hours } \\\hline \text { Account billing (lines) } & 16,000 \text { lines } & 8,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,800 \text { accounts } & 600 \text { accounts } \\\hline \text { Correspondence (letters) } & 50 \text { letters } & 110 \text { letters } \\\hline\end{array} 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

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