Question
Lennox suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three?activities: documentation?preparation,
Lennox suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three?activities: documentation?preparation, information technology?support, and training.Lennox figures that documentation costs are driven by the number of?pages, information technology support costs are driven by the number of software applications?used, and training costs are most closely associated with the number of direct labour hours worked.
Estimates of the costs and quantities of the allocation bases?follow:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/667f9dc4e2497_492667f9dc4cb5d8.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/667f9dc53459a_493667f9dc5256c9.jpg)
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