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Robison & Venegas, LLC is a Karate and Mixed Martial Arts studio in southeast Michigan. Robison & Venegas has decided to employ activity-based costing techniques
Robison & Venegas, LLC is a Karate and Mixed Martial Arts studio in southeast Michigan. Robison & Venegas has decided to employ activity-based costing techniques to determine how the company is controlling costs for each of its disciplines. After some research on what costs are driven by which activities, Robison & Venegas has settled on the following activities and cost pool information: Karate MMA Activity Cost Pool Activity Measure Cost Pool Activity Level Activity Level Rent Square feet of Space $ 70,000 2,500 4,500 Instruction Hours of Instruction $ 40,000 1,300 2,700 Marketing Events Hosted $ 180,000 6 9 Assume that Karate and MMA are the only disciplines taught by Robison & Venegas. What is the amount of cost allocated to Karate? What is the amount of cost allocated to MMA
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