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Novak Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Novak Woods are: Salaries and Wages,
Novak Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Novak Woods are: Salaries and Wages, Travel Expense, and Plan Reproduction Expense. The firm has provided the following information concerning activity and costs: Salaries and wages $441,000 Travel expense 111,000 Plan reproduction expense 131,000 Total $683,000 Estimated Use of Cost Driver per Service Project Assignment Business Development Other Salaries and wages 60% 30% 10% Travel expense 40% 40% 20% Plan reproduction expense 35% 40% 25% Calculate the total cost to be allocated to the (a) Project Assignment, (b) Business Development, and (c) Other activity cost pools. Activity Cost Pools (a) Prolect (b) Pucinace (c)
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