Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fine Line Consulting Firm uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its

Fine Line 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 P620,000

Travel expenses 140,000

Other expenses120,000

TotalP880,000

Distribution of resource consumption:

Activity Cost PoolsWorking On Engagements

Business

DevelopmentOther Total

Wages and salaries 60% 10% 30% 100% Travel expenses 50% 40% 10% 100% Other expenses 35% 25% 40% 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?

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

14th Edition

978-0132960649, 132960648, 132109174, 978-0132109178

More Books

Students also viewed these Accounting questions

Question

Identify the major liability loss exposures of business firms.

Answered: 1 week ago