How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
Fields & Maaner PLC, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:
Wages and salaries
$560,000
Travel expenses
140,000
Other expenses
140,000
Total
$840,000
Distribution of resource consumption:
Working On
Business
Activity Cost Pools
Engagements
Development
Other
Total
Wages and salaries
45%
25%
30%
100%
Travel expenses
60%
30%
10%
100%
Other expenses
30%
30%
40%
100%
Required:
a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
b. How much cost, in total, would be allocated to the Business Development activity cost pool?
c. How much cost, in total, would be allocated to the Other activity cost pool?