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

question 114

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.
$\begin{array}{|l|r|r|} \hline& \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 200 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 7,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,000 \text { accounts } & 600 \text { accounts } \\\hline \text { Correspondence (letters) } & 50 \text { letters } & 100 \text { letters } \\\hline\end{array}$
- 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:

Psychoanalysis

A therapeutic approach developed by Freud that explores unconscious motivations and conflicts to treat psychological disorders.

Psychodynamic Theory

A psychological theory that posits that human behavior and emotions are strongly influenced by unconscious motives and conflicts, originating in early childhood experiences.

Associated Treatment Techniques

Refers to therapeutic methods linked to specific clinical approaches for treating psychological or physical conditions.

Private Practice

A business (often in healthcare) operated by an individual practitioner, not directly associated with institutions such as hospitals or clinics.