Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,000 hours Account billing (lines) $30,000 20,000 lines Account verification (accounts) $15,000 20,000 accounts Correspondence (letters) $10,000 1,000 letters The above activities are carried out at two of their regional offices. Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10,000 lines 7,000 lines Account verification (accounts) 1,000 accounts 600 accounts Correspondence (letters) 50 letters 100 letters How much of the account verification costs will be assigned to the Northeast Office?
Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,000 hours Account billing (lines) $30,000 20,000 lines Account verification (accounts) $15,000 20,000 accounts Correspondence (letters) $10,000 1,000 letters The above activities are carried out at two of their regional offices. Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10,000 lines 7,000 lines Account verification (accounts) 1,000 accounts 600 accounts Correspondence (letters) 50 letters 100 letters How much of the account verification costs will be assigned to the Northeast Office?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Homework/2020
Pitt Jones Company had the following activities, allocated costs, and allocation bases:
|
Activities |
Allocated Costs |
Allocation Base |
|
Account inquiry (hours) |
$60,000 |
2,000 hours |
|
Account billing (lines) |
$30,000 |
20,000 lines |
|
Account verification (accounts) |
$15,000 |
20,000 accounts |
|
Correspondence (letters) |
$10,000 |
1,000 letters |
The above activities are carried out at two of their regional offices.
|
|
Northeast Office |
Midwest Office |
|
Account inquiry (hours) |
100 hours |
200 hours |
|
Account billing (lines) |
10,000 lines |
7,000 lines |
|
Account verification (accounts) |
1,000 accounts |
600 accounts |
|
Correspondence (letters) |
50 letters |
100 letters |
How much of the account verification costs will be assigned to the Northeast Office?
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