Malloy Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases
Activities Allocated Costs Allocation Base
Account inquiry (hours) $77,000 2,800 hours
Account billing (lines) $31,000 15,000 lines
Account verification (accounts) $14,000 29,000 accounts
Correspondence (letters) $14,000 1,000 letters
The above activities are carried out at two of its regional offices.
Activities Northeast Office Midwest Office
Account inquiry (hours) 100 hours 300 hours
Account billing (lines) 16,000 lines 8,000 lines
Account verification (accounts) 1,800 accounts 600 accounts
Correspondence (letters) 50 letters 110 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) $16,500
B) $77,000
C) $27,500
D) $8,250
D .
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