Question
Nelson, Inc. provides the following Activity Based Costing data: Activities Total Costs Activity-cost drivers Labor hours $450,000 11,000 hours Gas $52,000 9,000 gallons Invoices $35,000
Nelson, Inc. provides the following Activity Based Costing data:
Activities Total Costs Activity-cost drivers Labor hours $450,000 11,000 hours Gas $52,000 9,000 gallons Invoices $35,000 5,500 invoices Total costs $537,000
The above activities used by their three departments are:
Lawn Department Bush Department Plowing Department Labor hours 3,500 hours 2,200 hours 5,300 hours Gas 2,500 gallons 1,800 gallons 4,700 gallons Invoices 2,600 invoices 1,400 invoices 1,500 invoices
a) How much of the labor cost will be assigned to the Lawn Department? b) How much of the gas cost will be assigned to the Plowing Department? c) How much of invoice cost will be assigned to the Bush Department? d) How much of the gas cost will be assigned to the Lawn Department?
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