Miracle Consulting Corporation Has Its Headquarters in Chicago and Operates

question 94

Multiple Choice

Miracle 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:
$$\begin{array} { l l r } \text { Activity Cost Pool } & \text { Activity Measure } & \text { Estirnated Cost } \\\text { General service } & \text { \% of time devoted to branch } & \$ 700,000 \\\text { Research service } & \text { Computer time } & \$ 140,000\end{array}$$
Estimated branch data for next year is as follows:
$\begin{array}{lrr}&\text { \% of time}&\text { Computer time}\\\text { Portland } & 30 \% & 200,000 \text { minutes } \\\text { Dallas } & 60 \% & 150,000 \text { minutes } \\\text { Miami } & 10 \% & 50,000 \text { minutes }\end{array}$
How much of the headquarters cost allocation should the Dallas office expect to receive next year?

• A) $280,000.
• B) $409,500.
• C) $472,500.
• D) $504,000.

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Definitions:

Avoidance Learning

A process in behavioral psychology where a subject learns to prevent the occurrence of an unpleasant stimulus by performing a particular behavior.

Negative Reinforcement

A behavioral strategy where an aversive stimulus is removed following a desired behavior, increasing the frequency of that behavior.

Punishment

A consequence that reduces the likelihood of a behavior occurring in the future, often used in behavior modification strategies.

Positive Reinforcement

A behavioral technique involving the addition of a favorable stimulus following a desired behavior to increase the likelihood of it being repeated.