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Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:
Facility location | Kentucky | Arizona | Illinois | Total | ||||||||
New product revenue | $ | 56,000,000 | $ | 100,000,000 | $ | 84,000,000 | $ | 240,000,000 | ||||
Research & Development | $ | 60,000,000 | ||||||||||
Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be:
Multiple Choice
$28,000,000.
$21,000,000.
$33,000,000.
$14,000,000.
$17,000,000.
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