O) debit to Work-n-ProesS lto D) credit to Wages Payable for $70,500 25) Galley

Question

O) debit to Work-n-ProesS lto D) credit to Wages Payable for $70,500 25) Galley Company, a manufacturer of small kitchen appliances, had the following activities 25) allocated costs, and allocation bases: Activities Account inquiry (hours) Account verification (accounts) Allocated Costs Allocation Base $66,000 $47,000 $17,000 14,000 2000 hours 23,000 accounts 1400 letters Correspondence (letters) The above activities are carried out at two of its regional offices Activities Northeast Office Midwest Office 250 hours 8000 lines 700 accounts 100 letters uiry (hours 100 ho Account verification (accounts) Correspondence (letters) 40 lett What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) A) $4.40 B) $23.50 C) $33.00 D) $3.13

Explanation / Answer

Calculate cost per line account billing activity :

Cost per line = Total cost/Total activity

= 47000/15000

Cost per line = 3.13 per line

so answer is d) $3.13 per line

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