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Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $73,000 2600 hours Account billing (lines) $39,000 16,000 lines Account verification (accounts) $12,000 30,000 accounts Correspondence (letters) $10,000 1600 letters

Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $73,000 2600 hours Account billing (lines) $39,000 16,000 lines Account verification (accounts) $12,000 30,000 accounts Correspondence (letters) $10,000 1600 letters

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases:

Activities Allocated Costs Allocation Base
Account inquiry (hours) $73,000 2600 hours
Account billing (lines) $39,000 16,000 lines
Account verification (accounts) $12,000 30,000 accounts
Correspondence (letters) $10,000 1600 letters
The above activities are carried out at two of its regional offices.

Activities Northeast Office Midwest Office
Account inquiry (hours) 160 hours 300 hours
Account billing (lines) 14,000 lines 7000 lines
Account verification (accounts) 1400 accounts 600 accounts
Correspondence (letters) 60 letters 130 letters
What is the cost per line for the account billing activity? (Round your answer to the nearest cent.)
Group of answer choices
$2.44
$28.08
$15.00
$4.56
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