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 service	% of time devoted to branch	$741,000
Research service	Computer time	$211,880

Estimated branch data for next year is as follows:

	% of time	Computer time
Portland	20%	260,000 minutes
Dallas	55%	218,000 minutes
Miami	25%	51,700 minutes

How much of the headquarters cost allocation should Dallas expect to receive next year? (Do not round intermediate calculations.)

$494,750

$526,250

$431,750

$252,200

QUESTION 2

Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$84,000
Supervisory expense	$5,500

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.50	0.20	0.30
Supervisory expense	0.50	0.10	0.40

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Machining)	Batches (Order Filling)
Product Y7	1,430	1,240
Product V2	9,170	2,230
Total	10,600	3,470

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

$50.00 per order

$2.43 per order

$2.00 per order

$5.00 per order