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 location

Red Company allocates research and development costs to its three research

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 Kentucky $ 20,000,000 Arizona $ 40,000,000 Illinois $ 40,000,000 Total $ 100,000,000 $ 40,000,000 Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be: Multiple Choice $5,600,000. $28,000,000. $9,000,000. O O $23,000,000 $16,000,000. O

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