Grouper Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Grouper Woods are: Salaries and Wages, Travel Expense, and Plan Reproduction Expense. The firm has provided the following information concerning activity and costs: Salaries and wages $437,000 Travel expense 107,000 Plan reproduction expense 127,000 Total $671,000 Estimated Use of Cost Driver per Service Project Assignment Business Development Other Salaries and wages 60% 30% 10% Travel expense 40% 40% 20% Plan reproduction expense 35% 40% 25% Calculate the total cost to be allocated to the (a) Project Assignment, (b) Business Development, and (c) Other activity cost pools. Activity Cost Pools (b) (c) (a) Project Business Assignment Development Other Total Total cost $ $ $ $
Grouper Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Grouper Woods are: Salaries and Wages, Travel Expense, and Plan Reproduction Expense. The firm has provided the following information concerning activity and costs: Salaries and wages $437,000 Travel expense 107,000 Plan reproduction expense 127,000 Total $671,000 Estimated Use of Cost Driver per Service Project Assignment Business Development Other Salaries and wages 60% 30% 10% Travel expense 40% 40% 20% Plan reproduction expense 35% 40% 25% Calculate the total cost to be allocated to the (a) Project Assignment, (b) Business Development, and (c) Other activity cost pools. Activity Cost Pools (b) (c) (a) Project Business Assignment Development Other Total Total cost $ $ $ $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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