Miracle Consulting Corporation has its headquarters in Chicago and operates from three branch offices in Portland, Dallas, and Miami. Two of the company's activity cost pools are General Service and Research Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows: Activity Cost Pool Activity Measure Estimated Cost General service % of time devoted to branch $ 700,000 Research service Computer time $ 140,000 Estimated branch data for next year is as follows: % of time Computer time Portland 30 % 200,000 minutes Dallas 60 % 150,000 minutes Miami 10 % 50,000 minutes How much of the headquarters cost allocation should the Dallas office expect to receive next year? Multiple Choice $409,500. $472,500. $504,000. $280,000.
Miracle Consulting Corporation has its headquarters in Chicago and operates from three branch offices in Portland, Dallas, and Miami. Two of the company's activity cost pools are General Service and Research Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows: Activity Cost Pool Activity Measure Estimated Cost General service % of time devoted to branch $ 700,000 Research service Computer time $ 140,000 Estimated branch data for next year is as follows: % of time Computer time Portland 30 % 200,000 minutes Dallas 60 % 150,000 minutes Miami 10 % 50,000 minutes How much of the headquarters cost allocation should the Dallas office expect to receive next year? Multiple Choice $409,500. $472,500. $504,000. $280,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Miracle Consulting Corporation has its headquarters in Chicago and operates from three branch offices in Portland, Dallas, and Miami. Two of the company's activity cost pools are General Service and Research Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows:
| Activity Cost Pool | Activity Measure | Estimated Cost | ||
| General service | % of time devoted to branch | $ | 700,000 | |
| Research service | Computer time | $ | 140,000 | |
Estimated branch data for next year is as follows:
| % of time | Computer time | |||
| Portland | 30 | % | 200,000 | minutes |
| Dallas | 60 | % | 150,000 | minutes |
| Miami | 10 | % | 50,000 | minutes |
How much of the headquarters cost allocation should the Dallas office expect to receive next year?
Multiple Choice
-
$409,500.
-
$472,500.
-
$504,000.
-
$280,000.
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