Royal Rotisserie Company, a Manufacturer of Kitchen Ovens, Had the Following
Question 72
Question 72
Multiple Choice
Royal Rotisserie Company, a manufacturer of kitchen ovens, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $74,000$38,000$15,000$12,000 Allocation Base 2400 hours 19,000 lines 24,000 accounts 1600 letters The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 140 hours 14,000 lines 1600 accounts 30 letters Midwest Office 200 hours 8000 lines 700 accounts 120 letters How much of the account inquiry cost will be assigned to the Midwest Office? (Round any intermediate calculations to two decimal places and your final answer to the nearest dollar.)
A) $21,581 B) $73,992 C) $49,328 D) $6166
Correct Answer:
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