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Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours)
Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and allocation bases:
Activities | Allocated Costs | Allocation Base |
Account inquiry (hours) | $61,000 | 2,100 hours |
Account billing (lines) | $43,000 | 15,000 lines |
Account verification (accounts) | $16,000 | 24,000 accounts |
Correspondence (letters) | $13,000 | 1,400 letters |
The above activities are carried out at two of its regional offices.
Activities | Northeast Office | Midwest Office |
Account inquiry (hours) | 120 hours | 250 hours |
Account billing (lines) | 10,000 lines | 7,000 lines |
Account verification (accounts) | 1,800 accounts | 700 accounts |
Correspondence (letters) | 30 letters | 130 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.)
$1,189 | ||
$1,422 | ||
$1,206 | ||
$1,538 |
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