Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) $500 Allocated Costs $60,000 $30,000 $15,000 The above activities are used by departments P and Q: Department P 100 hours $1,200 $10,000 O $2,500 $3,000 Allocation Base 2,000 hours 20,000 lines 20,000 accounts 10,000 lines 1,000 accounts 50 letters How much of the accounts inquiry cost will be assigned to Department P? 1,000 letters Department Q 200 hours 7,000 lines 600 accounts 100 letters

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q : How much of the accounts inquiry cost will be assigned to Department P? $500 $1,200 $2,500 $3,000