A company has four different segments: 1, 2, 3, and 4. All four segments use the company's
Question:
A company has four different segments: 1, 2, 3, and 4. All four segments use the company's computer facilities. The total expense for the year for running the computer is $440,000. Segment 1 used the computer 6,000 computer hours, Segment 2 used 10,000 computer hours, Segment 3 used 8,000 computer hours, and Segment 4 used 12,000 computer hours. What would be the cost to Segments 1, 2, 3, and 4, in that order, if the expense were allocated on the basis of computer hours used?
A. $73,333, $122,222, $97,778 and $146,667
B. $120,000, $200,000, $160,000 and $240,000
C. $110,000, $110,000, $110,000 and $110,000
D. $44,000, $88,000, $132,000 and $176,000
E. none of the above
Statistics Principles and Methods
ISBN: 978-0470904114
7th edition
Authors: Richard A. Johnson, Gouri K. Bhattacharyya