Question
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?
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