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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
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) $2,000 Allocated Costs $60,000 $30,000 $15,000 The above activities are used by departments P and Q: O $10,500 $10,000 O $3,000 O $6,000 Department P 100 hours Allocation Base 2,000 hours 20,000 lines 20,000 accounts 10,000 lines 1,000 accounts 50 letters 1,000 letters How much of the account billing cost will be assigned to Department Q? Department Q 200 hours 7,000 lines 600 accounts 100 letters
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