Question
Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are carried out at two of their regional offices. What
Pitt Jones Company had the following activities, allocated costs, and allocation bases:
The above activities are carried out at two of their regional offices.
What is the cost per hour for the account inquiry activity?
Activities Account inquiry (hours) Account billing (lines) Account (accounts) Correspondence (letters) verification Allocated Costs Allocation Base $60,000 $30,000 $15,000 $10,000 2,000 hours 20,000 lines 20,000 accounts 1,000 letters Account inquiry (hours) Account billing (lines) Account (accounts) Correspondence (letters) Northeast Office Midwest Office 100 hours 200 hours 10,000 lines 7,000 lines verification 1,000 accounts 50 letters 600 accounts 100 letters
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
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