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Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account
Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $63,000 Allocation Base 2,200 hours $37,000 17,000 lines $19,000 24,000 accounts $13,000 1,200 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Account inquiry (hours) Account billing (lines) Account verification (accounts) 180 hours 14,000 lines 1,200 accounts Midwest Office 300 hours 8,000 lines 650 accounts A. $2.18 B. $16.82 C. $28.64 OD. $3.71 ley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $63,000 2,200 hours Account billing (lines) $37,000 17,000 lines Account verification (accounts) $19,000 24,000 accounts Correspondence (letters) $13,000 1,200 letters The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 180 hours 14,000 lines 1,200 accounts 40 letters What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) Midwest Office 300 hours 8,000 lines 650 accounts 100 letters Northeast Office A. $2.18 B. $16.82 C. $28.64 D. $3.71
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