The XYZ Manufacturing Company Has Two Support Activity Pools, Accounting

Multiple Choice

The XYZ Manufacturing Company has two support activity pools, Accounting and Human Resources. Costs for each are $380,000 and $190,000 respectively. 10% of the Human Resource costs are consumed by Accounting and 15% of the Accounting costs are consumed by Human Resources. The company uses the reciprocal method of allocating support costs. The total costs for the Human Resources department which will be allocated to line activities and cost objects will be:

A) $250,761
B) $252,208
C) $247,000
D) $249,850