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Help Se 9 Figge and Mathews PLC, a consulting firm, uses an activity-based costi

ID: 2339275 • Letter: H

Question

Help Se 9 Figge and Mathews PLC, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The companý has provided the following data concerning its costs and its activity based costing system: 200,800 268,8ee $960,000 Other expenses Total ctivity Cost Pools Working On Business Wages and salaries Travel expenses 48% 45% 15% 25% 45% 45% 35% 10% ee% 1ee% 1eex 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 d be allocated to the Other activity cost pool? Prev 9 of 10 Next >

Explanation / Answer

Statement of Cost Allocation

Costs

Total Amount

Allocation Ratio

Working on Engagements

Business Development

Other

Wages & Salaries

$500000

40:25:35

$200000

$125000

$175000

Travel Expenses

$200000

45:45:10

$90000

$90000

$20000

Other Expenses

$260000

15:45:40

$39000

$117000

$104000

TOTAL

$960000

$329000

$332000

$299000

Statement of Cost Allocation

Costs

Total Amount

Allocation Ratio

Working on Engagements

Business Development

Other

Wages & Salaries

$500000

40:25:35

$200000

$125000

$175000

Travel Expenses

$200000

45:45:10

$90000

$90000

$20000

Other Expenses

$260000

15:45:40

$39000

$117000

$104000

TOTAL

$960000

$329000

$332000

$299000