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Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters:
Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters: Activity Total Costs Activity-cost drivers Managing accounts payable $100,000 4,000 transactions Managing human resources 200,000 700 employees Managing accounts 150,000 3,000 hours receivable Managing computer 250,000 500 computers network Total costs $700,000 The above activities are used by the two divisions as follows: East Division West Division Accounts payable transactions Number of employees Accounts receivable hours Number of computers 1,200 transactions 300 employees 2,000 hours 200 computers 2,800 transactions 400 employees 1,000 hours 300 computers Reference: Ref 7-7 How much of the Accounts Payable cost will be allocated to the East Division? Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters: Activity Total Costs Activity-cost drivers Managing accounts payable $100,000 4,000 transactions Managing human resources 200,000 700 employees Managing accounts 150,000 3,000 hours receivable Managing computer 250,000 500 computers network Total costs $700,000 The above activities are used by the two divisions as follows: East Division West Division Accounts payable transactions Number of employees Accounts receivable hours Number of computers 1,200 transactions 300 employees 2,000 hours 200 computers 2,800 transactions 400 employees 1,000 hours 300 computers Reference: Ref 7-7 How much of the Accounts Payable cost will be allocated to the East Division
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