What is the computer cost allocated to division b

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Cincinnati Million, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: 

Computer services (85% fixed) $261,000 

Building occupancy 601,000

Personnel costs 111,000

Total common costs $973,000

The following information is available concerning various activity measures and service usages by each of the divisions: 

Division A

Division B

 

Area occupied (square feet)

20,100

40,200

Payroll

$381,000

$181,000

Computer time (hours)

210

230

Computer storage (megabytes)

4,100

 -0-

Equipment value

$201,000

 $251,000

Operating profit (pre-allocations)

$556,000

 $496,000


If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B?

$136,432.

$137,894.

$144,679.

$173,829.

Reference no: EM13934898

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