The Barton Creek Company Has Three Client-Contact Departments: Market Research,Branding,and

question 97

Essay

The Barton Creek Company has three client-contact departments: Market Research,Branding,and Promotion.Each department requires the services of the Legal Department for the contracts that each undertakes.The size of the Legal Department was based on long-run estimates of contracts.Information on the Legal Department's budgeted and actual costs is as follows:
The budget for the Legal Department is $200,000 + $7.50/contract.The budgeted volume of contracts is as follows: $$\begin{array} { | l | r | } \hline \text { Market Research } & 300 \\\hline \text { Branding } & 500 \\\hline \text { Promotion } & 700 \\\hline\end{array}$$
The actual number of contracts for Market Research was 286,for Branding was 450,and for Promotion was 675.Required (use three decimal places in your calculations):
a.If a single charging rate based on budgeted usage is used,how much of the cost of the Legal Department would be allocated to each of the producing departments?
b.If a dual charging rate is used,how much of the cost of the Legal Department would be allocated to each of the producing departments

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