Question
Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta office has
Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta office has its costs for Administration and Legal allocated to the two branch offices. Brandon has provided the following information:
Activity Cost Pool Cost Driver Costs
Administration % of time devoted to branch $700,000
Legal Hours spent on legal research $138,000
% of timedevoted to branch Hours spend on legal research
Nashville 80% 18,000
Birmingham 20% 6,000
How much of Atlanta's cost will be allocated to Nashville?
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
