Kemper Consulting Company Is Headquartered in Little Rock with Offices

question 27

Multiple Choice

Kemper Consulting Company is headquartered in Little Rock with offices in Memphis and Tulsa.All administrative duties are centralized in the Little Rock office.Canterbury's administrative costs are assigned to two activity cost pools, Accounting and Computer, with the costs allocated to the three offices.Estimated data for year are as follows: $\begin{array}{lll}\text { Activity Cost Pool }&\text { Activity Measure }&\text { Estimated Costs }\\\hline\text { Accounting } & \text { Time spent for office }\{\%\} & \$ 70,000 \\\text { Computer } & \text { Time used by office }\{\text { hrs\} } & \$ 25,000\end{array}$

$\begin{array}{lrr}&\text { Time spent }\{\% \text { \} }&\text { Time used (hrs) }\\\hline\text { Little Rock } & 35 \% & 624 \\\text { Memphis } & 40 \% & 1,560 \\\text { Tulsa } & 25 \% & 936\end{array}$ How much of the administrative costs will be allocated to the Memphis office?

• A)$40,500
• B)$47,500
• C)$38,000
• D)$95,000
• E)$70,000

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Definitions:

Top Executives

Individuals who occupy the highest-ranking positions in an organization, responsible for strategizing and overseeing operations.

Store Operations

The activities and tasks involved in managing a retail store effectively, including staffing, inventory management, and customer service.

Centralized

The concentration of control or authority in a single organization or location, often in the context of decision-making processes.

Hierarchy Of Authority

An organizational structure where different levels of power and responsibility determine how decisions are made and tasks are assigned.