Business, 12.10.2020 01:01 heber9609

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $86,200 2,900 Account billing (lines) $53,000 32,000 Account verification (accounts) $36,250 23,500 Correspondence (letters) $85,000 11,000 Potter & Weasley uses activity based costing. The above activities are used by Departments P and Q as follows: Department P Department Q Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000 2,000 What is the cost per driver unit for the account inquiry activity? (Round all answers to two decimal places.) A. $29.72 B. $7.73 C. $7.84 D.

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