Flannery Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $ 77 comma 000 2 comma 600 hours Account billing (lines) $ 38 comma 000 19 comma 000 lines Account verification (accounts) $ 20 comma 000 30 comma 000 accounts Correspondence (letters) $ 14 comma 000 1 comma 600 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10 comma 000 lines 9 comma 000 lines Account verification (accounts) 1 comma 000 accounts 650 accounts Correspondence (letters) 50 letters 110 letters What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.)

Cost per letter for the correspondence activity= $ 8.75

Explanation:

Flannery Company

Given

                                 Activities Allocated      Costs Allocation Base

Account inquiry (hours)$ 77, 000                      2,600 hours

Account billing (lines) $ 38, 000                         19,000 lines

Account verification (accounts) $ 20,000         30,000 accounts

Correspondence (letters) $ 14,000                    1, 600 letters

Activities                          Northeast Office        Midwest Office

Account inquiry (hours)          100 hours            200 hours

Account billing (lines)             10,000 lines          9,000 lines

Account verification (accounts) 1 ,000 accounts 650 accounts

Correspondence (letters)           50 letters               110 letters

Calculations

Cost per letter for the correspondence activity= Total Correspondence/ Total No of letters

Cost per letter for the correspondence activity= 14000/1600= 8.75

Cost per letter for the correspondence activity= $ 8.75

We divide the activity cost with the corresponding cost driver to get the cost per unit of activity.

what

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know