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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

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:

Activity Cost Pool Activity Measure Estimated Cost
Administrative service % of time devoted to branch $ 1,610,000
Development service Computer time $ 595,000

Estimated branch data for next year is as follows:

Time to branch Computer time
Nashville 50 % 1,500,000 minutes
Atlanta 30 % 1,125,000 minutes
Louisville 20 % 375,000 minutes
Total 100 % 3,000,000 minutes

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

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