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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

Answer & Explanation Solved by verified expert
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