Solution-How much of labor cost will be assigned to Bush

How much of labor cost will be assigned to Bush Department

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Reference no: EM133127465

Question - Columbus Company provides the following ABC costing information:

Activities	Total Costs	?Activity-cost drivers
Labor	?$392,000	?8,000 hours
Gas	?$30,000	5,000 gallons
Invoices	?$180,000	?7,500 invoices
Total costs	?$602,000

The above activities used by their three departments are:

	Lawn Department	Bush Department	Plowing Department
Labor	?2,600 hours	?1,300 hours	?4,100 hours
Gas	?1,800 gallons	?1,000 gallons	?2,200 gallons
Invoices	?1,600 invoices	100 invoices	?5,800 invoices

1. How much of the labor cost will be assigned to the Bush Department?

A. $200,900

B. $63,700

C. $97,825

D. $127,400

2. Overcosting a particular product may result in:

A. understating total product costs

B. operating efficiencies

C. pricing the product too high

D. pricing the product too low

Reference no: EM133127465

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How much of labor cost will be assigned to Bush Department

Reference no: EM133127465

Reference no: EM133127465

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