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:

Rectal Temperature

A method of measuring body temperature by inserting a thermometer into the rectum, considered quite accurate.

Pulmonary Artery

The large artery that carries deoxygenated blood from the heart to the lungs for oxygenation.

Vital Signs

Measurements of the body's basic functions, including temperature, blood pressure, pulse, and respiratory rate.

Diaphoresis

Excessive sweating, often as a result of illness or stress.