Miracle Consulting Corporation Has Its Headquarters in Chicago and Operates

question 74

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:

Estimated branch data for next year is as follows:
$$\begin{array} { | l | c | r | } \hline & \% \text { of time } & \text { Computer time } \\\hline \text { Portland } & 30 \% & 200,000 \text { minutes } \\\hline \text { Dallas } & 60 \% & 150,000 \text { minutes } \\\hline \text { Miami } & 10 \% & 50,000 \text { minutes } \\\hline\end{array}$$
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:

Golden Rule

A principle of treating others as one would wish to be treated oneself.

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The ability to understand, appreciate, and interact effectively with people from cultures or belief systems different from one’s own.

Personal Biases

Individual prejudices or preferences that influence one's judgment or decision-making process.

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The willingness to accept feelings, habits, or beliefs that are different from one's own.