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
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 |
| 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 |
Group of answer choices
$2.44
$28.08
$15.00
$4.56
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