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Sarasota Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Sarasota Woods are: Salaries and Wages, Travel
Sarasota Woods, PSC is an architectural firm that uses activity-based costing. The three activity cost pools used by Sarasota 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 $445,000 Travel expense 115,000 Plan reproduction expense 135,000 Total $695,000 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% 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) (b) (c) Project Assignment Business Development Other Total Total cost $ $ $
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