Flannery 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) Allocated Costs $68,000 $34,000 $17,000 $10,000 Correspondence (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) What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.) OB. $34.00 OC. $10.00 O D. $0.59 Northeast Office 140 hours 10,000 lines 1,000 accounts 70 letters Allocation Base 2,500 hours 20,000 lines 29,000 accounts 1,000 letters Midwest Office 200 hours 7,000 lines 650 accounts 150 letters
Flannery 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) Allocated Costs $68,000 $34,000 $17,000 $10,000 Correspondence (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) What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.) OB. $34.00 OC. $10.00 O D. $0.59 Northeast Office 140 hours 10,000 lines 1,000 accounts 70 letters Allocation Base 2,500 hours 20,000 lines 29,000 accounts 1,000 letters Midwest Office 200 hours 7,000 lines 650 accounts 150 letters
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Flannery 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)
The above activities are carried out at two of its regional offices.
Activities
Account inquiry (hours)
Account billing (lines)
Account verification (accounts)
Correspondence (letters)
What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.)
OB. $34.00
O C. $10.00
OD. $0.59
Allocated Costs
$68,000
$34,000
$17,000
$10,000
Northeast Office
140 hours
10,000 lines
1,000 accounts
70 letters
Allocation Base
2,500 hours
20,000 lines
29,000 accounts
1,000 letters
Midwest Office
200 hours
7,000 lines
650 accounts
150 letters
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