Question: Red Company allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility

Red Company allocates research and development costs to its three research facilities

based on each facility's total annual revenue from new product developments: Facility location New product revenue Research & Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is

Red Company allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location New product revenue Research & Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be: Kentucky Arizona Illinois $ 57,628,800 $ 100,060,000 $ 82,431,200 Total $ 240,120,000 $ 60,060,000

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1 Allocate the Research Development RD costs to the Kentucky research facility based on its total annual revenue from new product development Kentucky Revenue 57628800 Total Revenue 240120000 Total RD ... View full answer

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