36-Gizmo Company, a manufacturer of small appliances, had the following activiti

Question

36-Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases:

ACtIVIties Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) The above activities are carried out at two of its regional offices. Aliocatea COSts AIIOcation Baso $68,000 2,400 hours $33,000 $19,000 $14,000 1,200 letters 16,000 lines 22,000 accounts Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office 140 hours 12,000 lines 1,400 accounts 90 letters Midwest Office 250 hours 9,000 lines 650 accounts 140 letters What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.) OA. B. OC. OD· $28.33 $2.06 $0.86 $11.67

Explanation / Answer

Cost per hour for account inquiry activity = 68000/2400= 28.33 Option A is correct

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