Question
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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