Columbus Company provides the following ABC costing information: Activities Total Costs Activity dash– cost drivers Labor...
Columbus Company provides the following ABC costing information:
|
Activities |
Total Costs |
Activity dash–
cost drivers |
||
|
Labor |
$ 450 comma 000$450,000 |
10 comma 00010,000 hours |
||
|
Gas |
$ 24 comma 000$24,000 |
3 comma 0003,000 gallons |
||
|
Invoices |
$ 130 comma 000$130,000 |
6 comma 5006,500 invoices |
||
|
Total costs |
$ 604 comma 000$604,000 |
The above activities used by their three departments are:
|
Lawn Department |
Bush Department |
Plowing Department |
||
|
Labor |
2 comma 9002,900 hours |
1 comma 3001,300 hours |
5 comma 8005,800 hours |
|
|
Gas |
1 comma 8001,800 gallons |
900900 gallons |
300300 gallons |
|
|
Invoices |
1 comma 5001,500 invoices |
200200 invoices |
4 comma 8004,800 invoices |
How much of the labor cost will be assigned to the Bush Department?
Homework Answers
Activity rate=Respective cost/Respective activity
Activity rate for Labor=(450,000/10,000)=$45 per hour
Hence labor cost assigned to Bush Department=$45 per hour*1300 hours
=$58500
Add Answer to:
Columbus Company provides the following ABC costing
information:
Activities
Total Costs
Activity dash–
cost
drivers
Labor...
Columbus Company provides the following ABC costing information: Activities Labor Gas Invoices Total costs Total Costs...
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