Pitt Jones Company had the following activities, allocated costs, and allocation bas Activities Account inquiry (hours) $60,000 Account billing (dines) $30,000 Account verification (accounts) Corespondence Betters) All ocated Costs All ocation Base 2,000 hours 20,000 lines 20,000 accounts $15,000 $10,000 1,000 le tters The above activities are used by departments P and Q Department P 100 hours 10,000 lines Account verification (accounts) 1,000 accounts 50 letters Department Q 200 hours 7,000 lines 600 accounts 100 letters Account inquiry (hours) Account billing (lines) Corespondence (le tters) What is the cost per driver unit for the correspondence activity? $10.00 O $30.50 O $25.00 O $.75
Pitt Jones Company had the following activities, allocated costs, and allocation bas Activities Account inquiry (hours) $60,000 Account billing (dines) $30,000 Account verification (accounts) Corespondence Betters) All ocated Costs All ocation Base 2,000 hours 20,000 lines 20,000 accounts $15,000 $10,000 1,000 le tters The above activities are used by departments P and Q Department P 100 hours 10,000 lines Account verification (accounts) 1,000 accounts 50 letters Department Q 200 hours 7,000 lines 600 accounts 100 letters Account inquiry (hours) Account billing (lines) Corespondence (le tters) What is the cost per driver unit for the correspondence activity? $10.00 O $30.50 O $25.00 O $.75
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
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![Pitt Jones Company had the following activities, allocated costs, and allocation bası
Activities
Account inquiry (hours) $60,000
Account billing (lines) $30,000
Account verification
(accounts)
Correspondence
detters)
All ocated Costs:
Allocation Base
2,000 hours
20,000 lines
20,000 accounts
$15,000
$10,000
1,000 le tters
The above activities are used by departments P and Q:
Department P
100 hours
10,000 lines
Account verification (accounts) 1,000 accounts
50letters
Department Q
200 hours
7,000 lines
600 accounts
100 letters
Account inquiry (hours)
Account billing (lines)
Comespondence (le ters)
What is the cost per driver unit for the correspondence activity?
$10.00
$30.50
$25.00
$.75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda869df5-01d2-4a6a-a946-415268979e8f%2F8d191ca1-ef8e-41e7-b039-8843246abc1f%2Fnouw1os_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pitt Jones Company had the following activities, allocated costs, and allocation bası
Activities
Account inquiry (hours) $60,000
Account billing (lines) $30,000
Account verification
(accounts)
Correspondence
detters)
All ocated Costs:
Allocation Base
2,000 hours
20,000 lines
20,000 accounts
$15,000
$10,000
1,000 le tters
The above activities are used by departments P and Q:
Department P
100 hours
10,000 lines
Account verification (accounts) 1,000 accounts
50letters
Department Q
200 hours
7,000 lines
600 accounts
100 letters
Account inquiry (hours)
Account billing (lines)
Comespondence (le ters)
What is the cost per driver unit for the correspondence activity?
$10.00
$30.50
$25.00
$.75
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