Galley Company, a manufacturer of small kitchen appliances, had the following activites, allocated costs, and allocation bases:ActivitiesAllocated Costs Allocation Base$72,000Account inquiry (hours)Account biling (lines)Account verification (accounts)Correspondence (letters)The above activities are carried out at two of its regional offices.2,000 hours$30,00015,000 lines$16,00021,000 accounts$12,0001,600 lettersActivitiesNortheast Office Midwest Office140 hoursAccount inquiry (hours)Account billing (lines)Account verification (accounts) 1,300 accountsCorrespondence (letters)250 hours12,000 lines7,000 lines700 accounts40 letters130 lettersWhat is the cost per line for the account billing activity? (Round your answer to the nearest cent.)O A. $36.00B. $4.80C. $15.00D. $2.00

Galley Company, a manufacturer of small kitchen appliances, had the following activites, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) Account biling (lines) Account verification (accounts) S72,000 $30,000 $16,000 2,000 hours 15,000 lines 21,000 accounts 1,600 ietters The above activities are carried out at two of its regional offices. Correspondence (letters) $12,000 Activities Northeast Office Midwest Office Account inquiry (hours) Account billing (lines) Account verification (accounts) 1,300 accounts Correspondence (letters) 140 hours 250 hours 7,000 lines 12,000 lines 700 accounts 40 letters 130 letters What is the cost per line for the account biling activity? (Round your answer to the nearest cent.) OA $36.00 B. $4.80 C. $15.00 D. $2.00

Galley Company, a manufacturer of small kitchen appliances, had the following activites, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) Account biling (lines) Account verification (accounts) S72,000 $30,000 $16,000 2,000 hours 15,000 lines 21,000 accounts 1,600 ietters The above activities are carried out at two of its regional offices. Correspondence (letters) $12,000 Activities Northeast Office Midwest Office Account inquiry (hours) Account billing (lines) Account verification (accounts) 1,300 accounts Correspondence (letters) 140 hours 250 hours 7,000 lines 12,000 lines 700 accounts 40 letters 130 letters What is the cost per line for the account biling activity? (Round your answer to the nearest cent.) OA $36.00 B. $4.80 C. $15.00 D. $2.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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