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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:

Activity Cost Pool Activity Measure Estimated Cost

General services....... % of time devoted to branch $700,000

Research Services.... Computer time $140,000

Estimated branch data for next year is as follows:

Dallas.........60% of time 150,000 minutes computer time

Portland......30% of time 200,000 minutes computer time

Miami.........10% of time 50,000 minutes computer time

How much of the headquarters cost allocation should Dallas expect to receive next year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92806916

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