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Sparkling Solutions, headquartered in Atlanta, uses an activity-based costing system and has branch offices in Augusta and Columbus. The Atlanta office allocates its Administration and
Sparkling Solutions, headquartered in Atlanta, uses an activity-based costing system and has branch offices in Augusta and Columbus. The Atlanta office allocates its Administration and Legal costs to the two branch offices. The company provided the following information: Activity Cost Pool Administration Legal Cost Driver % of time devoted to branch Hours spent on legal research $152,500 $167,600 $209,500 $135,000 % of Time Devoted to Branch Costs $450,000 $160,000 Augusta Columbus How much of Atlanta's cost will be allocated to the Columbus branch office? 75% 25% Hours Spent on Legal Research 12,000 4,000
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