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jscubs1 jscubs1
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7 months ago
Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta office has its costs for Administration and Legal allocated to the two branch offices. Brandon has provided the following information:

Activity Cost PoolCost DriverCosts
Administration% of time devoted to branch$700,000
LegalHours spent on legal research  138,000

​% of timeHours spend on
​​devoted to branchlegal research
Nashville80%18,000
Birmingham20%6,000
How much of Atlanta's cost will be allocated to Nashville?

▸ $628,500

▸ $665,300

▸ $663,500

▸ $670,400
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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rbacon2rbacon2
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7 months ago
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More solutions for this book are available here
$663,500

Administration: $700,000 × 80% = $560,000;
Legal: $138,000 × [18,000 ÷ (18,000 + 6,000)] = $103,500;
$560,000 + $103,500 = $663,500
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jscubs1 Author
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7 months ago
Thanks
Alina01978
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Yesterday
Just got PERFECT on my quiz
elizabetheldrid
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2 hours ago
You make an excellent tutor!
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