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Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and ...

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Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and ...

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 Pool

Cost Driver

Costs

Administration	% of time devoted to branch	$700,000
Legal	Hours spent on legal research	138,000

% of time

Hours spend on

devoted to branch

legal research

Nashville	80%	18,000
Birmingham	20%	6,000

How much of Atlanta's cost will be allocated to Nashville?

▸ $628,500

▸ $665,300

▸ $663,500

▸ $670,400

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

Read 37 times

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