Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office costs (1 gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs Labor Gas Invoices $320,000 $36,000 $40,000 $396,000 Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1.600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices
Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office costs (1 gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs Labor Gas Invoices $320,000 $36,000 $40,000 $396,000 Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1.600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 1CE: Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending...
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