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

question 102

Multiple Choice

Bendas Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases: $$\begin{array} { | l | r | r | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 71,000 & 2,800 \text { hours } \\\hline \text { Account billing (lines) } & \$ 40,000 & 16,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 12,000 & 21,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 11,000 & 1,200 \text { letters } \\\hline\end{array}$$ The above activities are carried out at two of its regional offices.
$$\begin{array} { | l | r | r | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 120 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 16,000 \text { lines } & 9,000 \text { lines } \\\hline \text { Account verification (accounts) } & 1,100 \text { accounts } & 650 \text { accounts } \\\hline \text { Correspondence (letters) } & 80 \text { letters } & 150 \text { letters } \\\hline\end{array}$$ How much of the account verification costs will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar. )

• A)$371
• B)$86
• C)$627
• D)$68

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