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
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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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