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Figge and Mathews Public Limited Company, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided
Figge and Mathews Public Limited Company, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries Travel expenses Other expenses $ 470,000 170,000 230,000 $ 870,000 Total Distribution of resource consumption: Wages and salaries Travel expenses Other expenses Activity Cost Pools Working on Business Engagements Development 40% 25% 45% 45% 15% 45% Other 35% 10% 40% Total 100% 100% 100% Required: a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool? b. How much cost, in total, would be allocated to the Business Development activity cost pool? c. How much cost, in total, would be allocated to the Other activity cost pool? Activity Cost Pool Total Cost a. Working On Engagements b. Business Development c. Other
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