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Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $86,000

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Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $86,000 3,500 Account billing (lines) $55,000 32,000 Account verification (accounts) $35,250 28,500 Correspondence (letters) $77,000 11,000 Potter & Weasley uses activity based costing. The above activities are used by Departments P and Q as follows: Department P Department Q Account inquiry (hours) 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 400 O A. $1.72 O B. $7.00 O c. $22.00 OD. $24.57 Click to select your answer. Account billing (lines) Account verification (accounts) Correspondence (letters) Potter & Weasley uses activity based costing. $55,000 $35,250 $77,000 32,000 28,500 11,000 The above activities are used by Departments P and Q as follows: Department P Department Q Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000 2,000 What is the cost per driver unit for the correspondence activity? (Round all answers to two decimal places.) O A. $1.72 O B. $7.00 O c. $22.00 OD. $24.57 Click to select your answer. MacBook Pro

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