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8 years ago
Eide Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases:

Activities   Allocated Costs   Allocation Base
Account inquiry (hours)   $66,000   2,400 hours
Account billing (lines)   $42,000   17,000 lines
Account verification (accounts)   $14,000   21,000 accounts
Correspondence (letters)   $14,000   1,400 letters

The above activities are carried out at two of its regional offices.

Activities   Northeast Office   Midwest Office
Account inquiry (hours)   100 hours   250 hours
Account billing (lines)   12,000 lines   9,000 lines
Account verification (accounts)   1,100 accounts   700 accounts
Correspondence (letters)   70 letters   130 letters

What is the cost per account for the account verification activity? (Round your answer to the nearest cent.)
A) $3.88
B) $10.00
C) $27.50
D) $0.67
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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8 years ago
Will mark this subject solved, thanks
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