Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville,Atlanta,and Louisville.Two of the company's activity cost pools are Administrative Service and Development Service.These costs are allocated to the three branch offices using an activity-based costing system.Information for next year follows: Estimated branch data for next year is as follows: How much of the headquarters cost allocation should Atlanta expect to receive next year?
A)$280,000
B)$409,500
C)$472,500
D)$504,000
E)$560,000

Question

Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville,Atlanta,and Louisville.Two of the company's activity cost pools are Administrative Service and Development Service.These costs are allocated to the three branch offices using an activity-based costing system.Information for next year follows:  Estimated branch data for next year is as follows:  How much of the headquarters cost allocation should Atlanta expect to receive next year?
A)$280,000 
B)$409,500 
C)$472,500 
D)$504,000 
E)$560,000

Quizplus · Accepted Answer

The Answer of Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville,Atlanta,and Louisville.Two of the company's activity cost pools are Administrative Service and Development Service.These costs are allocated to the three branch offices using an activity-based costing system.Information for next year follows:  Estimated branch data for next year is as follows:  How much of the headquarters cost allocation should Atlanta expect to receive next year?
A)$280,000 
B)$409,500 
C)$472,500 
D)$504,000 
E)$560,000

Founder Consulting Corporation Has Its Headquarters in Memphis and Operates