Exercise 187 Jayson Woods, PSC is an architectural firm that uses activity-based

Question

Exercise 187 Jayson Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Jayson 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 $430,000 Travel expense 100,000 Plan reproduction expense 120,000 Total $650,000 Activity Cost Pools 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.

Explanation / Answer

PROJECT ASSIGNMENT

BUSINESS DEVLOPEMENT

OTHER ACTIVITY COST

SALARIES & WAGES ($430000* 60%) $258000 TRAVEL EXPENSES ($100000 * 40%) $40000 PLAN & REPRODUCTION EXPENSES ($120000 * 35%) $42000 TOTAL $340000

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