Reach Consulting Corporation Has Its Headquarters in Chicago and Operates

Multiple Choice

Reach Consulting Corporation has its headquarters in Chicago and operates from three branch offices in Portland, Dallas, and Miami. Reach's headquarter activities are assigned to two activity cost pools: General Service and Research Service. These costs are then allocated to the three branch offices. Information for next year related to this activity-based costing system is as follows: $\begin{array}{lrr} \text { Activity Cost Pool}& \text { Activity Measure}& \text { Estimated}\\ &&\text { Overhead cost}\\ \text {General service. } & \text { \% of time devoted to branch } &£ 700,000 \\ \text {Research service. } & \text { Computer time } &£ 140,000\\\end{array}$

Estimated branch data for next year is as follows: $\begin{array}{lcc}& \text {\% of of tha devoted to branch }& \text { computer Time } &\\ \text { Portland } &30\%& \text {200,000 \text { minutes } }\\ \text { Dallas } &60\%& \text {150,000 \text { minutes } }\\ \text { Miami} &10\%& \text { 50,000 \text { minutes } }\\\end{array}$

How much of the headquarters cost allocation should Dallas expect to receive next year

A) £280,000
B) £409,500
C) £472,500
D) £504,000