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Flannery Company,a Manufacturer of Small Appliances,had the Following Activities,allocated Costs,and

question 107

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Flannery Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases:  Activities  Allocated Costs  Allocation Base  Account inquiry (hours)  $79,0002,700 hours  Account billing (lines)  $45,00016,000 lines  Account verification (accounts)  $16,00020,000 accounts  Correspondence (letters)  $12,0001,000 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 79,000 & 2,700 \text { hours } \\\hline \text { Account billing (lines) } & \$ 45,000 & 16,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 16,000 & 20,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 12,000 & 1,000 \text { letters } \\\hline\end{array} The above activities are carried out at two of its regional offices.
 Activities  Northeast Office  Midwest Office  Account inquiry (hours)  180 hours 200 hours  Account billing (lines)  10,000 lines 9,000 lines  Account verification (accounts)  1,600 accounts 650 accounts  Correspondence (letters)  60 letters 150 letters \begin{array} { | l | r | r | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 180 \text { hours } & 200 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 9,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,600 \text { accounts } & 650 \text { accounts } \\\hline \text { Correspondence (letters) } & 60 \text { letters } & 150 \text { letters } \\\hline\end{array} What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent. )

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