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Pitt Jones Company had the following activities, allocated costs, and allocation bas Activities Allocated Costs Accountinquiry (hours) $60,000 Account billing (lines) $30,000 Account verification $15,000

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Pitt Jones Company had the following activities, allocated costs, and allocation bas Activities Allocated Costs Accountinquiry (hours) $60,000 Account billing (lines) $30,000 Account verification $15,000 (accounts) Correspondence $10,000 (letters) Allocation Base 2,000 hours 20,000 lines 20,000 accounts 1,000 letters The above activities are used by departments P and Q Department P Accountinquiry (hours) 100 hours Account billing (lines) 10,000 lines Account verification (accounts) 1,000 accounts Correspondence (letters) 50 letters Department 200 hours 7,000 lines 600 accounts 100 letters What is the cost per driver unit for the correspondence activity? $10.00 $30.50 $25.00 $.75

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