Solved

Pitt Jones Company Had the Following Activities, Allocated Costs, and Allocation

question 12

Multiple Choice

Pitt Jones Company had the following activities, allocated costs, and allocation bases:
$\begin{array} { | l | r | r | } \hline \text { Artivitias } & \text { Allocated Casts } &{ \text { Allocation Bare } } \\\hline \text { Accaunt inquiry (hours) } & \$ 60,000 & 2,000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 30,000 & 20,000 \text { lines } \\\hline \text { Afcaunt verification (accounts) } & \$ 15,000 & 20,000 \text { accounts } \\\hline \text { Correspandence (letters) } & \$ 10,000 & 1,000 \text { letters } \\\hline\end{array}$
The above activities are carried out at two of their regional offices.
$\begin{array}{|l|r|r|}\hline& \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 200 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 7,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,000 \text { accounts } & 600 \text { accounts } \\\hline\text { Correspondence (letters) } & 50 \text { letters } & 100 \text { letters }\\\hline\end{array}$

-
How much of the correspondence cost will be assigned to the Northeast Office?

Definitions:

The Other America

A term often associated with discussions on economic and social inequality, highlighting the disparities in living conditions and opportunities between different segments of society.

Poverty

The state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Production Possibilities Frontier

A curve that shows the maximum possible output combinations of two goods or services that an economy can achieve when all its resources are used efficiently.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, deflation, and a collapse in demand and investment.