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:
$\begin{array}{lcc}
\text {Activity Cost Pool} & \text { Cost Driver } & \text {Costs} \
\hline \text {Administration} & \text {\% of time devoted to branch} & \$ 700,000 \
\text {Legal} & \text {Hours spent on legal research} & \$ 138,000
\end{array}$ $$\begin{array} { l c c }
& \begin{array} { c }
\text { \% of time } \
\text { devoted to branch }
\end{array} & \begin{array} { c }
\text { Hours spend on } \
\text { legal research }
\end{array} \\hline
\text { Nashville } & 80 \% & 18,000 \
\text { Birmingham } & 20 \% & 6,000
\end{array}$$ How much of Atlanta's cost will be allocated to Birmingham?

Question

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:
 $\begin{array}{lcc}
\text {Activity Cost Pool} & \text { Cost Driver } & \text {Costs} \
\hline \text {Administration} &  \text {\%  of time devoted to branch} & \$ 700,000  \
\text {Legal} & \text {Hours spent on legal research} &  \$ 138,000 
\end{array}$ $$\begin{array} { l c c } 
& \begin{array} { c } 
\text { \% of time } \
\text { devoted to branch }
\end{array} & \begin{array} { c } 
\text { Hours spend on } \
\text { legal research }
\end{array} \\hline
\text { Nashville } & 80 \% & 18,000 \
\text { Birmingham } & 20 \% & 6,000
\end{array}$$ How much of Atlanta's cost will be allocated to Birmingham?

Quizplus · Accepted Answer

The Answer of 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:
 $\begin{array}{lcc}
\text {Activity Cost Pool} & \text { Cost Driver } & \text {Costs} \
\hline \text {Administration} &  \text {\%  of time devoted to branch} & \$ 700,000  \
\text {Legal} & \text {Hours spent on legal research} &  \$ 138,000 
\end{array}$ $$\begin{array} { l c c } 
& \begin{array} { c } 
\text { \% of time } \
\text { devoted to branch }
\end{array} & \begin{array} { c } 
\text { Hours spend on } \
\text { legal research }
\end{array} \\hline
\text { Nashville } & 80 \% & 18,000 \
\text { Birmingham } & 20 \% & 6,000
\end{array}$$ How much of Atlanta's cost will be allocated to Birmingham?

Brandon Consulting Company Is Headquartered in Atlanta and Has Branch