Business, 23.04.2021 20:40, aziah86

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)$334,000 Building occupancy 698,000 Personnel costs 188,000 Total common costs$1,220,000 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) 20,400 40,800 Payroll$425,000 $225,000 Computer time (hours) 290 310 Computer storage (megabytes) 7,650 -0- Equipment value$280,000 $330,000 Operating profit (pre-allocations)$685,000 $625,000 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)

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