Pitt Jones Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases: The above activities are carried out at two of its regional offices.

-How much of the account verification costs will be assigned to the Northeast Office?

Question

Pitt Jones Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases:  The above activities are carried out at two of its regional offices.
 
-How much of the account verification costs will be assigned to the Northeast Office?

Quizplus · Accepted Answer

The account verification costs are allocated based on the number of accounts verified, and the total number of accounts verified by both offices is 10,000. The Northeast Office verified 3,000 accounts, which is 30% of the total, and therefore they should be assigned 30% of the total account verification costs of $2,500, which is $750. Therefore, the correct answer is (C) $750.

Pitt Jones Company,a Manufacturer of Small Appliances,had the Following Activities,allocated