Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tenet engineering, inc. operates two user division

Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs...

50.1K

Verified Solution

Question

Accounting

Tenet Engineering, 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) $ 348,000
Building occupancy 633,000
Personnel costs 133,000
Total common costs $ 1,114,000

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) 22,100 44,200
Payroll $ 420,000 $ 220,000
Computer time (hours) 360 380
Computer storage (megabytes) 7,550 -0-
Equipment value $ 224,000 $ 274,000
Operating profit (pre-allocations) $ 725,000 $ 665,000

If all common costs are allocated using operating profit as the allocation basis, what is the total cost allocated to Division B (rounded to the nearest whole dollar)?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

How would I prove this ? R > A / R > ( A v W...

Programming
1.2K views

Can you please take this code and just rewrite it so it can be easily be...

Advance Math
1.2K views

Draw a sketch of z ? C | Im((3 ? 2i)z) > 6 . 2. Express...

Basic Math
1.2K views

What is the difference between expected payoff under certainty and expected payoff under risk? Explain the basic...

Biology
1.2K views

Which of the following terms is correct for COVID 19 Epidemic disease Pandemic disease Endemic...

Physics
1.2K views

A glass slab is placed between an object O and observer The refractive index of...

Geometry
1.2K views

Consider ADEF in the figure below The perpendicular bisectors of its sides are XW YW...

Basic Math
1.2K views

Solve by using the quadratic formula. Express the solution set in exact simplest form.x-7x-3=0

Calculus
1.2K views

3 Let L t represent the number of likes on a social media post t...

Algebra
1.2K views

Find the future value of an annuity which has deposits for 150 per month for...

Accounting
1.2K views

HW 5(1) (Protecte File Home Insert Page Layout Formulas Data Review View Help Search O...

Finance
1.2K views

Look at the period from 1970 through 1975: Index...