Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st Edition

0077525264, 978-0077525262

More Books

Students also viewed these Accounting questions

Question

Why is persistence important? (p. 211)

Answered: 1 week ago

Question

Explain the need for remedial basic skills training programs

Answered: 1 week ago

Question

Describe a typical interpersonal skills training program

Answered: 1 week ago