Research Associates Corporation uses activity-based costing. They have two activity cost pools and three office locations. Administrative costs are allocated based on the percent of time used by the various locations. Research costs are allocated based on computer time used. Information is as follows: Estimated department data is as follows: The administrative and research costs that the Pikesville office should expect to receive total:
A) $142,000
B) $132,500
C) $166,500
D) $95,500

Question

Research Associates Corporation uses activity-based costing. They have two activity cost pools and three office locations. Administrative costs are allocated based on the percent of time used by the various locations. Research costs are allocated based on computer time used. Information is as follows:  Estimated department data is as follows:  The administrative and research costs that the Pikesville office should expect to receive total:
A) $142,000 
B) $132,500 
C) $166,500 
D) $95,500

Quizplus · Accepted Answer

The Answer of Research Associates Corporation uses activity-based costing. They have two activity cost pools and three office locations. Administrative costs are allocated based on the percent of time used by the various locations. Research costs are allocated based on computer time used. Information is as follows:  Estimated department data is as follows:  The administrative and research costs that the Pikesville office should expect to receive total:
A) $142,000 
B) $132,500 
C) $166,500 
D) $95,500

Research Associates Corporation Uses Activity-Based Costing