Activity Details:

• Activity 1:
  • Cost Driver: Consulting Hours
  • Cost: $600,000
  • Consulting Hours: 6,000

• Activity 2:
  • Cost Driver: Support Hours
  • Cost: $400,000
  • Support Hours: 4,000

Requirements:

• Allocate costs to services based on activity drivers.
• Calculate the total cost for each service.
• Present the ABC cost allocation in a detailed table format.
• Discuss the benefits of using ABC in cost management for service industries.