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Tenet Engineering, Inc operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the
Tenet Engineering, Inc operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred Computer services (85% fixed) Building occupancy Personnel costs Total common costs $ 327,eee 656,000 147,000 $1,130,000 The following information is wallable concerning various activity measures and service usages by each of the divisions Area occupied (square feet) Payroll Computer time (hours) Computer storage (megabytes) Equipment value Operating profit (pre-allocations) Division A 22,700 $431,000 238 6,450 $ 23,00 $ 655,000 Division B 45,400 $231,000 250 -- $ 253, eee $595, eee If common computer service costs are allocated using computer time as the allocation basis what is the computer cost allocated to Division B (rounded to the nearest whole dollar
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