Business development activity cost pool

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Reference no: EM13646390

Fidler & Jenkins 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............	$620,000
	Travel expenses.................	140,000
	Other expenses..................	120,000
	Total..................................	$880,000

Distribution of resource consumption:

Activity Cost Pools	Working On Engagements	Business Development	Other	Total
Wages and salaries......	60%	10%	30%	100%
Travel expenses...........	50%	40%	10%	100%
Other expenses............	35%	25%	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?

Reference no: EM13646390

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