Agouti Legal Corp, a law firm, uses an activity-based costing inwhich there are three activity cost pools. The company has providedthe following data concerning its costs and its activity basedcosting system:
Costs:
Wages and salaries
$ 275,000
Travel expenses
50,000
Other expenses
125,000
Total
$ 450,000
Distribution of resource consumption:
Activity Cost Pools
Working on
Business
Engagements
Development
Other
Total
Wages and salaries
80%
15%
5%
100%
Travel expenses
75%
20%
5%
100%
Other expenses
10%
35%
55%
100%
Required:
a. How much cost, in total, would be allocated to the Working OnEngagements activity cost pool?
b. How much cost, in total, would be allocated to the BusinessDevelopment activity cost pool?
c. How much cost, in total, would be allocated to the Otheractivity cost pool?
You must show your calculations.
IF YOU DO NOT SHOW YOUR CALCULATIONS I WILL MARK ITINCOMPLETE!!!!!! don't have to be a lot, just show me how you didit
Agouti Legal Corp, a law firm, uses an activity-based costing inwhich there are three activity cost pools. The company has providedthe following data concerning its costs and its activity basedcosting system:
Costs:
Wages and salaries | $ 275,000 |
Travel expenses | 50,000 |
Other expenses | 125,000 |
Total | $ 450,000 |
Distribution of resource consumption:
Activity Cost Pools | ||||
Working on | Business | |||
Engagements | Development | Other | Total | |
Wages and salaries | 80% | 15% | 5% | 100% |
Travel expenses | 75% | 20% | 5% | 100% |
Other expenses | 10% | 35% | 55% | 100% |
Required:
a. How much cost, in total, would be allocated to the Working OnEngagements activity cost pool?
b. How much cost, in total, would be allocated to the BusinessDevelopment activity cost pool?
c. How much cost, in total, would be allocated to the Otheractivity cost pool?
You must show your calculations.
IF YOU DO NOT SHOW YOUR CALCULATIONS I WILL MARK ITINCOMPLETE!!!!!! don't have to be a lot, just show me how you didit