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

question 113

Multiple Choice

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

• A) $2,000
• B) $6,500
• C) $3,000
• D) $6,000

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Definitions:

Data Entry Clerk

A job role that involves inputting, updating, or maintaining data in computer systems or databases.

Proximal Goals

Short-term objectives or targets that are set as steps towards achieving a longer-term goal.

Distal Goals

Long-term objectives that are set to be achieved in the future, often serving as the final target of a series of smaller goals.

Positive Reinforcement

A motivational technique that involves rewarding a desired behavior to encourage its repetition in the future.