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BIU- - -A-E E S Merge & Center - $ - % Formatting Font Alignment 5 Number B C D E F G H I

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BIU- - -A-E E S Merge & Center - $ - % Formatting Font Alignment 5 Number B C D E F G H I Question 5 (6 Marks) Pan & Smith LLP, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concemning its costs and its activity-based costing system: Costs: Wages and Salaries Travel Expenses Other Expenses Total $540,000 $100.000 $140,000 $780.000 Distribution of Resource Consumption Wages and salaries Travel expenses Other expenses Activity Cost Pools Working On Business Engagements Development 50% 20% 60% 30% 35% 25% Other 30% 10% 40% Total 100% 100% 100% Required: Cover Page 01 02 03 04 05 06 07 08 09 x N P 0 W SAMSUNG Alignment ront E F. C D Tecipenses Other Expenses Total ru, $140,000 $780.000 Distribution of Resource Consumption: Other Activity Cost Pools Working On Business Engagements Development 50% 20% 30% 35% 25% Wares and salaries Travel expenses Other expenses Total 100% 100% 100% Required: a. How much cost, in total, would be allocated to the "Working on Engagements" activity cost pool? (2 marks) b. How much cost, in total, would be allocated to the "Business Development activity cost pool? (2 marks) How much cost, in total, would be allocated to the other activity cost pool? (2 marks) Page 01 02 03 04 05 06 07 08 09 * NPOW SAMSUNG

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