Leyden Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases
Activities Allocated Costs Allocation Base
Account inquiry (hours) $80,000 2,200 hours
Account billing (lines) $31,000 19,000 lines
Account verification (accounts) $10,000 21,000 accounts
Correspondence (letters) $12,000 1,400 letters
The above activities are carried out at two of its regional offices.
Activities Northeast Office Midwest Office
Account inquiry (hours) 180 hours 250 hours
Account billing (lines) 16,000 lines 7,000 lines
Account verification (accounts) 1,400 accounts 600 accounts
Correspondence (letters) 50 letters 140 letters
How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $429
B) $12,000
C) $1,200
D) $5,143
A .
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