What is the personnel cost allocated to division a

Reference no: EM131025066

Cincinnati Million, 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)	$279,000
Building occupancy	619,000
Personnel costs	129,000

Total common costs	$1,027,000

The following information is available concerning various activity measures and service usages by each of the divisions:

	Divisionn A	Division B
Area occupied(square feet)	21,900	43,800
Payroll	$399,000	$199,000
Computer time (hours)	390	410
Computer storage (megabytes)	5,000	-0-
Equipment value	$219,000	$269,000
Operating profit (pre-allocations)	$574,000	$514,000

Using the most appropriate allocation basis, what is the personnel cost allocated to Division A?

Reference no: EM131025066

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