Question
Columbus Company provides the following ABC costing information: Activities Total Costs Activity dash cost drivers Labor $ 450 comma 000$450,000 10 comma 00010,000 hours Gas
Columbus Company provides the following ABC costing information:
Activities | Total Costs | Activity dash cost drivers | ||
Labor | $ 450 comma 000$450,000 | 10 comma 00010,000 hours | ||
Gas | $ 24 comma 000$24,000 | 3 comma 0003,000 gallons | ||
Invoices | $ 130 comma 000$130,000 | 6 comma 5006,500 invoices | ||
Total costs | $ 604 comma 000$604,000 |
The above activities used by their three departments are:
Lawn Department | Bush Department | Plowing Department | ||
Labor | 2 comma 9002,900 hours | 1 comma 3001,300 hours | 5 comma 8005,800 hours | |
Gas | 1 comma 8001,800 gallons | 900900 gallons | 300300 gallons | |
Invoices | 1 comma 5001,500 invoices | 200200 invoices | 4 comma 8004,800 invoices |
How much of the labor cost will be assigned to the Bush Department?
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