Figge and Mathews Public Limited Company, a consulting firm, uses an activity-based costing in which there are
Question:
Figge and Mathews Public Limited Company, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs:
Wages and salaries $ 430,000
Travel expenses 130,000
Other expenses 190,000
Total $ 750,000
Distribution of resource consumption:
Activity Cost Pools Working On Engagements Business Development Other
Total Wages and salaries 45% 30% 25% 100%
Travel expenses 45% 45% 10% 100%
Other expenses 15% 45% 40% 100%
Required:
a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
b. How much cost, in total, would be allocated to the Business Development activity cost pool?
c. How much cost, in total, would be allocated to the Other activity cost pool?
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess