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Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Allocated Costs $79,000
Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Allocated Costs $79,000 Allocation Base 2,300 hours Account billing (lines) $36,000 15,000 lines Account verification (accounts) $12,000 22,000 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) Account billing (lines) Account verification (accounts) 140 hours 10,000 lines 1,800 accounts 250 hours Correspondence (letters) 80 letters 7,000 lines 600 accounts 100 letters How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A. $5,571 B. $929 C. $743 OD. $16,714
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