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Company A has Upstate Downstate Total Annual revenue $300,000 $500,000 $800,000 Annual salaries $30,000 $50,000 $80,000 Customer No. 50 80 130 Miles driven 80,000 40,000
Company A has
|
| Upstate | Downstate | Total |
| Annual revenue | $300,000 | $500,000 | $800,000 |
| Annual salaries | $30,000 | $50,000 | $80,000 |
| Customer No. | 50 | 80 | 130 |
| Miles driven | 80,000 | 40,000 |
|
Overhead cost
|
| Total Cost | Cost Driver |
| Travel | $40,000 | Miles driven |
| Outings | $150,000 | No. of customers |
| Admin | $160,000 | salaries |
| Total amt. | $350,000 |
|
a. Allocate overhead costs using activity based cost to the 2 tables
b. What is the income of each table using activity based cost
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