Reference no: EM132776129
Question - Columbus Company provides the following ABC costing information:
Activities Total Costs Activity-cost drivers
Labor $352,000 8,000 hours
Gas $8,000 4,000 gallons
Invoices $110,000 5,500 invoices
Total costs $470,000
The above activities used by their three departments are:
Lawn Department Bush Department Plowing Department
Labor 3,200 hours 1,200 hours 3,600 hours
Gas 1,900 gallons 900 gallons 1,200 gallons
Invoices 1,500 invoices 300 invoices 3,700 invoices
Required - How much of the gas cost will be assigned to the Lawn Department?
A. $1,800
B. $3,800
C. $2,400
D. $8,000
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