Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Sovereign Credit Checks produces two styles of credit reports: Individual and Corporate. The difference between the two is the amount of background information and data collection required. The Corporate report uses more skilled personnel because additional checking and data are required. The relevant figures for the year just completed follow: Total support service costs to be allocated are $3,200,000.

-If service department costs are allocated by data purchased, the Corporate report department will receive an allocation of:

A) $1,777,778
B) $1,066,667
C) $505,263
D) $2,133,333