Question: Question 5 (6 Marks) Pan & Smith LLP, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company
Question 5 (6 Marks) Pan & Smith LLP, 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 Travel Expenses Other Expenses Total $540,000 $100,000 $140,000 $780.000 Distribution of Resource Consumption: Wages and salaries Travel expenses Other expenses Activity Cost Pools Working on Business Engagements Development Other 50% 20% 30% 60% 30% 10% 35% 25% 40% Total 100% 100% 100% Required: a. How much cost, in total, would be allocated to the "Working on Engagements" activity cost pool? (2 marks) b. How much cost, in total, would be allocated to the "Business Development" activity cost pool? (2 marks) c. How much cost, in total, would be allocated to the "Other" activity cost pool? (2 marks)
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