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Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts)
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Potter & Weasley uses activity based costing. Indirect Activity Costs $85,500 $57,000 $35,250 $73,000 Allocation Base 3700 31,000 28,500 11,000 The above activities are used by Departments P and Q as follows: Department Q Department P 800 Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 400 10,000 6,000 1.000 4,000 7,000 2,000 What is the cost per driver unit for the account billing activity? (Round all answers to two decimal places.) $6,64 $1.24 $1.84 $23.11
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