What is the cost per account for the account verification activity? Activities A

Question

What is the cost per account for the account verification activity?

Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $73,000 $47,000 $13,000 $10,000 Allocation Base 2,600 hours 17,000 lines 26,000 accounts 1,200 letters The above activities are carried out at two of its regional offices Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 160 hours 14,000 lines 1,000 accounts 70 letters Midwest Office 200 hours 9,000 lines 700 accounts 140 letters OA. $4.29 O B. $0.50 O C. $8.33 O D. $28.08

Explanation / Answer

Answer is $0.50

Account Verification:

Estimated Activity Cost = $13,000
Estimated Activity = 26,000

Cost per account = Estimated Activity Cost / Estimated Activity
Cost per account = $13,000 / 26,000
Cost per account = $0.50

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.