Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 1 Essentials Of Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PHFC28N, 979-8794951356

More Books

Students also viewed these Accounting questions