In Order to Operate Its Customer Support Activity, Lucky's Amusement

Multiple Choice

In order to operate its customer support activity, Lucky's Amusement Park incurred $325,000 in annual costs (spread evenly amongst the four quarters of the year) . Due to the large number of visitors to the park each year, Lucky has been debating whether or not they can afford to bring on additional customer support staff members. While having an annual capacity of 525,000 minutes, Lucky is going to be utilizing Time-Driven Activity-Based Costing (TDABC) . They have identified the following as their key activities within the customer support function: ticket sales, park admittance, customers assistance (once they enter the park) , and processing customer refunds. Management has compiled information pertaining to the first two quarters of the year:
Using TDABC, what are the total costs allocated to the first quarter? Also, what was the over or underallocation of costs? (If required, round calculations to two decimal places.)

A) $74,579.80 in total costs allocated; with $6,670.20 overallocated
B) $74,579.80 in total costs allocated; with $6,670.20 underallocated
C) $81,250.00 in total costs allocated; with $6,670.20 overallocated
D) $81,250.00 in total costs allocated; with $6,670.20 underallocated