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

Question 102

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Bendas Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases:  Activities  Allocated Costs  Allocation Base  Account inquiry (hours)  $71,0002,800 hours  Account billing (lines)  $40,00016,000 lines  Account verification (accounts)  $12,00021,000 accounts  Correspondence (letters)  $11,0001,200 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 71,000 & 2,800 \text { hours } \\\hline \text { Account billing (lines) } & \$ 40,000 & 16,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 12,000 & 21,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 11,000 & 1,200 \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)  120 hours 250 hours  Account billing (lines)  16,000 lines 9,000 lines  Account verification (accounts)  1,100 accounts 650 accounts  Correspondence (letters)  80 letters 150 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 120 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 16,000 \text { lines } & 9,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,100 \text { accounts } & 650 \text { accounts } \\\hline \text { Correspondence (letters) } & 80 \text { letters } & 150 \text { letters } \\\hline\end{array} How much of the account verification costs will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar. )


A) $371
B) $86
C) $627
D) $68

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