Question

Hammer Time Asia has three divisions China, Thailand, and Japan Department Expense                 Actual Cost          

Hammer Time Asia has three divisions China, Thailand, and Japan

Department Expense                 Actual Cost                 Activity Base

International training                  $2,950,500                    Trip days

Export Fees                               $2,190,000                    Shipments

Document Center   $734,400                    Hours

                                                        China Japan Thailand

Trip days    4,803    1,168 1,054

Shipments    168    35 47

Hours 610    210 880

How much is the total cost of the Thailand division?

$888,888

$1,234,560

$1,296,733

$3,752,460

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Answer #1

OPTION: $1234560

EXPLANATION:

total cost of the Thailand division = international training expenses + expert fees + document center expenses

= [$2950500 x {1054/(4803 + 1168 + 1054)}] + [$2190000 x {47/(168 + 35 + 47)}] + [$734400 x {880/(610 + 210 + 880)}]

= $442680 + $411720 + $380160

= $1234560

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