Reach Consulting Corporation has its headquarters in Chicago and operates from t
ID: 2462781 • Letter: R
Question
Reach 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:
How much of the headquarters cost allocation should Dallas expect to receive next year? (Do not round intermediate calculations.)
1. $306,600
2. $347,700
3. $401,100
4. $369,600
How much of the headquarters cost allocation should Dallas expect to receive next year? (Do not round intermediate calculations.)
1. $306,600
2. $347,700
3. $401,100
4. $369,600
Activity Cost Pool General service Research service Activity Measure Estimated Cost % of time devoted to branch Computer time $708,000 $129,575 Estimated branch data for next year is as follows % of time 4()% )% 15% Computer time 2h ()()() minutes 2()4f)()() minutes 56,300 minutes Portland MiamiExplanation / Answer
Particulars
Basis of Allocation
Total Amount
Allocated Amount
General Service
45%
708,000
318,600
Reach Service
204/518
129,575
51,000
Total
369,600
Particulars
Basis of Allocation
Total Amount
Allocated Amount
General Service
45%
708,000
318,600
Reach Service
204/518
129,575
51,000
Total
369,600
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