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Business, 03.04.2020 00:25 gnarlyjordan

Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters: Activity T otal Costs Activity-cost drivers Managing accounts payable $100,000 4,000 transactions Managing human resources 200,000 700 employees Managing accounts receivable 150,000 3,000 hours Managing computer network 250,000 500 computers Total costs $700,000 The above activities are used by the two divisions as follows: East Division West Division Accounts payable transactions 1,200 transactions 2,800 transactions Number of employees 300 employees 400 employees Accounts receivable hours 2,000 hours 1,000 hours Number of computers 200 computers 300 computers Reference: Ref 7-7 How much of the Accounts Payable cost will be allocated to the East Division?

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