31) Flannery Company, a manufacturer of small appliances, had the following activities, allocated costs, and...
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31) Flannery 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) Allocated Costs $79,000 $31,000 $12,000 $ 11,000 Allocation Base 3000 hours 17,000 lines 25,000 accounts 1400 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 120 hours 10,000 lines 1500 accounts 60 letters Midwest Office 300 hours 7000 lines 700 accounts 110 letters What is the cost per letter for the correspondence activity? (Round your answer to the nearest cent.) A) $7.86 B) $22.14 C) $3.67 D) $0.48
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