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

question 50

Multiple Choice

Pitt Jones Company had the following activities, allocated costs, and allocation bases: $$\begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 60,000 & 2,000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 30,000 & 20,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 15,000 & 20,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 10,000 & 1,000 \text { letters } \\\hline\end{array}$$ The above activities are carried out at two of their regional offices.
$\begin{array}{|l|r|r|} \hline& \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 200 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 7,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,000 \text { accounts } & 600 \text { accounts } \\\hline \text { Correspondence (letters) } & 50 \text { letters } & 100 \text { letters } \\\hline\end{array}$
- What is the cost per letter for the correspondence activity?

• A) $10.00
• B) $30.50
• C) $25.00
• D) $0.75

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Definitions:

Genetic Material

The DNA and RNA in cells that carries the genetic information essential for inheritance and cell function.

Hershey And Chase

Scientists who conducted experiments in 1952 with bacteriophages that helped to prove that DNA is the genetic material of viruses.

DNA Nucleotides

The basic building blocks of DNA, consisting of a phosphate group, a sugar molecule (deoxyribose), and one of four nitrogenous bases (adenine, cytosine, guanine, or thymine).

DNA Polymerase

An enzyme that catalyzes the synthesis of new DNA molecules by adding nucleotides to a DNA strand.