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: Red Company

Red Company allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Red Company allocates research and development costs to
its three research facilities based on each facility's total
annual revenue from new product developments:
Using revenue as an allocation base, the amount of costs
allocated to the Illinois research facility is calculated to be:
Multiple Choice
.$15,200,000.
.$24,000,000
*$5,000,000.
.$19,000,000.
.$12,000,000.
Facility location
Kentucky
Arizona
Illinois
Total
New product revenue
$ 60,000,000
$ 80,000,000
$ 60,000,000
$ 200,000,000
Research & Development
$ 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
$15,200,000.
$24,000,000.
$5,000,000.
$19,000,000.
$12,000,000.
 Red Company allocates research and development costs to its three research

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