Pitt Jones Company Had the Following Activities, Allocated Costs, and Allocation
Question 18
Question 18
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 How much of the account verification costs will be assigned to Department P?
A) $800 B) $2,500 C) $750 D) $1,500
Correct Answer:
Verified
Unlock this answer now Get Access to more Verified Answers free of charge