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Tenet Engineering, Inc. operates two user divisions as separate cost objects to determine the cost of each dion, the company allocates common costs to the
Tenet Engineering, Inc. operates two user divisions as separate cost objects to determine the cost of each dion, 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 $ 286,000 662,000 157,000 $1,105,000 The following information is available 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 27,700 $ 477,000 310 7,100 $ 281,000 $ 715,000 Division B 55,400 $ 277,000 330 -0. $ 331,000 $ 655,000 Using the most appropriate allocation basis, what is the personnel cost allocated to Division A? $157,000. $99,322 $82,822. 0 $101,142
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