The last step in the preparation of activity-based costing data is to

a-Allocate costs to products

b-None of these answers is correct

c-Calculate the unit product cost

d- Calculate activity cost pool rates

Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta office has its costs for Administration and Legal allocated to the two branch offices. Brandon has provided the following information:

Activity Cost Pool

Cost Driver

Costs

Administration

% of time devoted to branch

$700,000

Legal

Hours spent on legal research

$138,000

% of timedevoted to branch

Hours spend on legal research

Nashville

80%

18,000

Birmingham

20%

6,000

How much of Atlanta's cost will be allocated to Nashville?

None of these answers is correct

$670,400

$628,500

$663,500