Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and...
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Accounting
Atomic Microwave Company, a manufacturer of microwave ovens, had the following activities, allocated costs, and allocation bases:
Activities
Allocated Costs
Allocation Base
Account inquiry (hours)
$61,000
2,100 hours
Account billing (lines)
$43,000
15,000 lines
Account verification (accounts)
$16,000
24,000 accounts
Correspondence (letters)
$13,000
1,400 letters
The above activities are carried out at two of its regional offices.
Activities
Northeast Office
Midwest Office
Account inquiry (hours)
120 hours
250 hours
Account billing (lines)
10,000 lines
7,000 lines
Account verification (accounts)
1,800 accounts
700 accounts
Correspondence (letters)
30 letters
130 letters
How much of the account verification costs will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
$1,189
$1,422
$1,206
$1,538
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