Question
Pure Cleaning Services provides the following overhead costs information based on Activity Base Costing (ABC): Activities Total Costs Activity-cost drivers Vacuum Cleaning $350,000 17,500 square
Pure Cleaning Services provides the following overhead costs information based on Activity Base Costing (ABC):
| Activities | Total Costs | Activity-cost drivers | |
| Vacuum Cleaning | $350,000 | 17,500 | square feet |
| Washing | $44,000 | 22,000 | gallons of water |
The above activities are used by two types of accounts as follows:
| Commercial | Domestic | |||
| Vacuum Cleaning | 12,500 | square feet | 2,500 | square feet |
| Washing | 5,000 | gallons of water | 17,000 | gallons of water |
How much is the total overhead costs assigned to the Commercial?
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
6th edition
978-0070968295, 9781259087462, 978-0071051415
