If common computer service costs are allocated using computer time as the allocation basis,what is the computer cost allocated to Division B?
A)$136,190
B)$137,647
C)$144,444
D)$173,333

Question

Quizplus · Accepted Answer

Computer time used by Division B is 27,238 hours. Total computer cost is $1,361,900. Computer cost allocated to Division B is $1,361,900 x 27,238 / 100,000 = $136,190.

If Common Computer Service Costs Are Allocated Using Computer Time