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5) XX company provides the following Activity-Based costing (ABC) information. Activities Total cost Activity-cost drives 1 392,000 8,000 labor hours 2 30,000 5,000 gallons 3

5) XX company provides the following Activity-Based costing (ABC) information.

Activities

Total cost

Activity-cost drives

1

392,000

8,000 labor hours

2

30,000

5,000 gallons

3

180,000

7,500 invoices

Total cost

602,000

The above activities used by their three departments are:

X Department

Y Department

Z Department

Labor hours

2,000 hours

1,300 hours

4,000 hours

Gallons

1,600 gallons

1,000 gallons

2,200 gallons

Invoices

1,300 invoices

100 invoices

5,800 invoices

How much of the total cost will be assigned to the X Department?

A)136,400

B) 173,600

C) 564,000

D) 311,600

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