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How much of atlanta cost will be allocated to nashville

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Reference no: EM132746609

Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta office has its costs for Administration and Legal allocated to the two branch offices.

Brandon has provided the following information:

Activity Cost Pool Cost Driver Costs

Administration % of time devoted to branch $700,000

Legal Hours spent on legal research $138,000

% of time devoted to branch Hours spend on legal research

Nashville 80% 18,000

Birmingham 20% 6,000

Problem 1: How much of Atlanta's cost will be allocated to Nashville?

a. $628,500

b. $663,500

c. $670,400

d. $665,300

Reference no: EM132746609

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