The Barton Creek Company has three client-contact departments: Market Research,Branding,and Promotion.Each department requires the services of the Legal Department for the contracts that each undertakes.The size of the Legal Department was based on long-run estimates of contracts.Information on the Legal Department's budgeted and actual costs is as follows:
The budget for the Legal Department is $400,000 + $15/contract.The budgeted volume of contracts is as follows:$$\begin{array} { | l | r | }
\hline \text { Market Research } & 200 \
\hline \text { Branding } & 500 \
\hline \text { Promotion } & 800 \
\hline
\end{array}$$
The actual number of contracts for Market Research was 207,for Branding was 512,and for Promotion was 820.Required (use three decimal places in your calculations):
a.If a single charging rate based on budgeted usage is used,how much of the cost of the Legal Department would be allocated to each of the producing departments?
b.If a dual charging rate is used,how much of the cost of the Legal Department would be allocated to each of the producing departments

Question

The Barton Creek Company has three client-contact departments: Market Research,Branding,and Promotion.Each department requires the services of the Legal Department for the contracts that each undertakes.The size of the Legal Department was based on long-run estimates of contracts.Information on the Legal Department's budgeted and actual costs is as follows:
The budget for the Legal Department is $400,000 + $15/contract.The budgeted volume of contracts is as follows:$$\begin{array} { | l | r | } 
\hline \text { Market Research } & 200 \
\hline \text { Branding } & 500 \
\hline \text { Promotion } & 800 \
\hline
\end{array}$$ 
The actual number of contracts for Market Research was 207,for Branding was 512,and for Promotion was 820.Required (use three decimal places in your calculations):
a.If a single charging rate based on budgeted usage is used,how much of the cost of the Legal Department would be allocated to each of the producing departments?
b.If a dual charging rate is used,how much of the cost of the Legal Department would be allocated to each of the producing departments

Quizplus · Accepted Answer

The Answer of The Barton Creek Company has three client-contact departments: Market Research,Branding,and Promotion.Each department requires the services of the Legal Department for the contracts that each undertakes.The size of the Legal Department was based on long-run estimates of contracts.Information on the Legal Department's budgeted and actual costs is as follows:
The budget for the Legal Department is $400,000 + $15/contract.The budgeted volume of contracts is as follows:$$\begin{array} { | l | r | } 
\hline \text { Market Research } & 200 \
\hline \text { Branding } & 500 \
\hline \text { Promotion } & 800 \
\hline
\end{array}$$ 
The actual number of contracts for Market Research was 207,for Branding was 512,and for Promotion was 820.Required (use three decimal places in your calculations):
a.If a single charging rate based on budgeted usage is used,how much of the cost of the Legal Department would be allocated to each of the producing departments?
b.If a dual charging rate is used,how much of the cost of the Legal Department would be allocated to each of the producing departments

The Barton Creek Company Has Three Client-Contact Departments: Market Research,Branding,and