Reach Consulting Corporation Has Its Headquarters in Chicago and Operates

question 40

Multiple Choice

Reach 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: How much of the headquarters cost allocation should Dallas expect to receive next year?

• A)$280,000
• B)$409,500
• C)$472,500
• D)$504,000

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Definitions:

Plasma

The liquid component of blood, comprising about 55% of its volume, in which cells and other components are suspended.

Liquid portion

The liquid component of a substance, often referred to in contexts such as blood, where it is the part not containing cells.

Blood cells

Cells that circulate in the bloodstream, comprising red blood cells (erythrocytes), white blood cells (leukocytes), and platelets (thrombocytes).

Hemoglobin

A protein in red blood cells responsible for carrying oxygen throughout the body.