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Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account
Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs Allocation Base $75,000 2,700 hours $34,000 18,000 lines $18,000 26,000 accounts $14,000 1,000 letters Midwest Office 300 hours 9,000 lines The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Northeast Office 100 hours Account billing (lines) Account verification (accounts) 12,000 lines 1,700 accounts 650 accounts Correspondence (letters) 70 letters 120 letters How much of the account verification costs will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) OA. $449 B. $1,173 OC. $69 OD. $83
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