Reference no: EM132501265

Research Associates Corporation uses activity-based costing. They have two activity cost pools and three office locations. Administrative costs are allocated based on the percent of time used by the various locations.

Research costs are allocated based on computer time used. Information is as follows:

Cost Pool Estimated Total Overhead Costs

Administrative $160,000

Research $210,000

Estimated location data is as follows:

% Administrative Time Computer Time

Dayton 15% 62,000 minutes

Pikesville 45% 40,000 minutes

Parkersburg 40% 18,000 minutes

Question 1: The combined administrative and research costs that the Parkersburg office should expect to be allocated are:

Group of answer choices

Option 1: $64,000

Option 2: $31,500

Option 3: $142,000

Option 4: $95,500

Option 5: $132,500