QUESTION 2 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Account inquiry (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 Account inquiry (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 How much of the account inquiry cost will be assigned to Department Q? $2,000 $6,500 $3,000 $6,000 QUESTION 3 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Account inquiry (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 Account inquiry (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 How much of the correspondence cost will be assigned to Department P? $500 $1,200 $2,500 $800 QUESTION 4 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Account inquiry (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 Account inquiry (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 How much of the account verification costs will be assigned to Department P? O $800 $2,500 $750 $1,500