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Leyden Company, a manufacturer of small appliances, had the following activities, allocated costs, and Paste allocation bases: Allocation Base Activities Account inquiry (hours) Account billing
Leyden Company, a manufacturer of small appliances, had the following activities, allocated costs, and Paste allocation bases: Allocation Base Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Allocated Costs 2,200 hours $80,000 19,000 lines $31,000 21,000 accounts $10,000 Correspondence (letters) 1,400 letters $12,000 The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Offfice Account inquiry (hours) 180 hours 250 hours Account billing (lines) 16,000 lines 7,000 lines Account verification (accounts) 1,400 accounts 600 accounts Correspondence (letters) 50 letters 140 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.) $5,143 $1.200 t Answer $429 Page 3 of 3
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