Pitt Jones Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases
Activities Allocated Costs Allocation Base
Account inquiry (hours) $61,000 2,600 hours
Account billing (lines) $32,000 18,000 lines
Account verification (accounts) $16,000 24,000 accounts
Correspondence (letters) $13,000 1,000 letters
The above activities are carried out at two of its regional offices.
Activities Northeast Office Midwest Office
Account inquiry (hours) 120 hours 200 hours
Account billing (lines) 10,000 lines 9,000 lines
Account verification (accounts) 1,800 accounts 600 accounts
Correspondence (letters) 70 letters 150 letters
What is the cost per line for the account billing activity? (Round your answer to the nearest cent.)
A) $1.78
B) $23.46
C) $3.39
D) $12.31
A .A)
Cost of account billing:
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