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