What amount of variable costs will be allocated


Rand, Land, and Stan, CPA's, has three divisions: audit, tax, and business consulting. When the specifications for the new computer system were established, the audit division needed 50% of the capacity, the tax division required 30%, and business consulting required 20%. The fixed computer department costs are allocated based on these percentages. The variable costs of the computer department are allocated based on the minutes of computer time that each department uses. The computer division budget for fixed costs is $450,000, and the budget for variable costs is $145,600. The company anticipates using 520,000 minutes of computer time.
If the audit division uses 250,000 minutes of computer time, what amount of variable costs will be allocated to the audit division (rounded to the nearest dollar)?

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Accounting Basics: What amount of variable costs will be allocated
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