Organic Laboratories Allocates Research and Development Costs to Its Three

question 57

Multiple Choice

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: $\begin{array}{ll}\text { Facility location }&\text { Kentucky }&\text { Arizona }&\text { Illinois }&\text { Total }\\\text { New product }\\\text { revenue }&\$56,000,000&\$100,000,000&\$84,000,000&\$240,000,000\\\text { Research \& }\\(\text { Development }&&&&\$60,000,000\\\end{array}$
Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be:

• A) $17,000,000.
• B) $33,000,000.
• C) $14,000,000.
• D) $28,000,000.
• E) $21,000,000.

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Definitions:

Lacrimal Gland

Tear gland located in the superolateral corner of the orbit.

Mitral Cells

Neurons in the olfactory bulb that receive signals from the sensory neurons and transmit them to other parts of the brain for odor processing.

Taste Buds

Sensory organs located on the tongue that enable the perception of different flavors such as sweet, salty, bitter, and sour.

Supporting Cells

Supporting cells provide structural stability and metabolic support to various types of cells in many tissues, enhancing their function and survival.