Business, 06.05.2020 04:22 cman1280

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

Activities Allocated Costs Allocation Base
Account inquiry (hours) $ 63,000 2,900 hours
Account billing (lines) $ 38,000 20,000 lines
Account verification (accounts) $ 12,000 30,000 accounts
Correspondence (letters) $ 13,000 1,600 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) 10,000 lines 9,000 lines
Account verification (accounts) 1,000 accounts 650 accounts
Correspondence (letters) 50 letters 110 letters

What is the cost per letter for the correspondence activity?

Answers: 3

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