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Pronghorn Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Pronghorn Woods are: Salaries and Wages,
Pronghorn Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Pronghorn 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 $443,000 Travel expense 113,000 Plan reproduction expense 133,000 Total $689,000 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 (b) (a) Project Business Assignment Development Other Total S $ Total cost $
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