13- Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each divisio

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13 Tenet Engineering Inc Operates Two User Divisions As Separate Cost Objects To Determine The Costs Of Each Divisio 1 (49.84 KiB) Viewed 25 times

13- 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) Building occupancy $260,000 600.000 Personnel costs Total common costs 110.000 $970,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Area occupied (square feet) 20.000 Division B 40,000 Payroll $380,000 $180,000 Computer time (hours) 200 220 Computer storage (megabytes) 4,050 -0. Equipment value $200.000 $250,000 Operating profit (pre-allocations) $555.000 $495.000 Using the most appropriate allocation basis, what is the personnel cost allocated to Division A (rounded to the nearest whole dollar)? $76.463. $58,143 $110.000. $74.643 a) b) BLECH List of D 19