4. Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and...
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4. Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Estimated Costs 307.600 $34.000 Allocation Base Activities 2600 hours Account inquiry (hours) 17,000 lines Account billing lines) Account verification (accounts) $18,000 20.000 accounts Correspondence (letters) $10.150 1400 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 100 hours 250 hours Account billing (lines) 16,000 lines 8000 lines Account verification (accounts) 1900 accounts 700 accounts Correspondence (letters) 140 letters $10.150 What is the total cost assigned to the Northeast Office? 50 letters
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