Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 57,792,000 $ 100,400,000 $ 82,608,000 $ 240,800,000 Research & Development $ 60,400,000 Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 57,792,000 $ 100,400,000 $ 82,608,000 $ 240,800,000 Research & Development $ 60,400,000 Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 86,000,000 $ 100,000,000 $ 54,000,000 $ 240,000,000 Research & Development $ 60,000,000 Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be: Multiple Choice $25,500,000. $20,500,000. $13,500,000. $6,500,000. $17,000,000.
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