Question

A centralized legal department of Exline Company has expenses of $500,000. The department has provided a total of 2,000 hours of service for the period. The Northern Region has used 575 hours of legal service and the Southern Region has used 1,425 hours of legal service during the period. How much should the Southern Region be charged for legal services?

(A) $356,250
(B) $143,750
(C) $250,000
(D) $212,500

Answer 1

The correct answer is A.

Step-by-step explanation:

Giving the following information:

A centralized legal department of Exline Company has expenses of $500,000. The department has provided a total of 2,000 hours of service for the period. The Northern Region has used 575 hours of legal service and the Southern Region has used 1,425 hours of legal service during the period.

Total hours= 2,000hours

Southern Region= 1,425/2,000= 0.7125

Total cost= 0.7125*500,000= $356,250