Brookside Property Management is a property management service company for small shopping malls that uses ABC to
Question:
Activity Cost Pool Activity Measure
Management of outdoor areas ........... Square metres of outdoor areas
Management of indoor mall spacemain level ... Square metres of main level mall space
Management of indoor mall spaceother levels ..... Square metres of nonmain level mall space
Travel to jobs .............. ................. Kilometres
Customer billing and service ................ Number of shopping malls
The company has already carried out its first-stage allocations of costs. The companys annual costs and activities are summarized as follows:
Parker Hills Shopping Mall is one of Brooksides oldest clients. Details concerning the malls layout, outdoor space, and distance from Brooksides head office are as follows:
Required:
1. Compute the activity rate for each of the activity cost pools.
2. Determine the total overhead cost that would be assigned to the Parker Hills Shopping Mall using the ABC system.
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Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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