A centralized legal department of Exline Company has expenses of $500,000. The department has provided a total of 2,000 hours of service for the period. The Northern Region has used 575 hours of legal service and the Southern Region has used 1,425 hours of legal service during the period. How much should the Southern Region be charged for legal services? a. $356,250 b. $143,750 c. $250,000 d. $212,500

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 27E: Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is...
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A centralized legal department of Exline Company has expenses of
$500,000. The department has provided a total of 2,000 hours of service
for the period. The Northern Region has used 575 hours of legal service
and the Southern Region has used 1,425 hours of legal service during
the period. How much should the Southern Region be charged for legal
services?
a. $356,250
b. $143,750
c. $250,000
d. $212,500
Transcribed Image Text:A centralized legal department of Exline Company has expenses of $500,000. The department has provided a total of 2,000 hours of service for the period. The Northern Region has used 575 hours of legal service and the Southern Region has used 1,425 hours of legal service during the period. How much should the Southern Region be charged for legal services? a. $356,250 b. $143,750 c. $250,000 d. $212,500
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