Cincinnati Million,Inc.operates two user divisions as separate cost objects.To determine the costs of each division,the company allocates common costs to the divisions.During the past month,the following common costs were incurred: The following information is available concerning various activity measures and service usages by each of the divisions: If all common costs are allocated using operating profit as the allocation basis,what is the total cost allocated to Division B?
A)$457,286.
B)$512,714.
C)$555,000.
D)$1,087,576.

Question

Cincinnati Million,Inc.operates two user divisions as separate cost objects.To determine the costs of each division,the company allocates common costs to the divisions.During the past month,the following common costs were incurred:  The following information is available concerning various activity measures and service usages by each of the divisions:  If all common costs are allocated using operating profit as the allocation basis,what is the total cost allocated to Division B?
A)$457,286. 
B)$512,714. 
C)$555,000. 
D)$1,087,576.

Quizplus · Accepted Answer

The Answer of Cincinnati Million,Inc.operates two user divisions as separate cost objects.To determine the costs of each division,the company allocates common costs to the divisions.During the past month,the following common costs were incurred:  The following information is available concerning various activity measures and service usages by each of the divisions:  If all common costs are allocated using operating profit as the allocation basis,what is the total cost allocated to Division B?
A)$457,286. 
B)$512,714. 
C)$555,000. 
D)$1,087,576.