Reference no: EM133041693

Question - Answer the following two questions using the information below - Happy Valley Land and Snow Company provides the following ABC costing information:

Activities Total Costs Activity-cost drivers

Labor hours $320,000 8,000 hours

Gas $36,000 6,000 gallons

Invoices $40,000 2,500 invoices

Total costs $396,000

The above activities used by their three departments are:

Lawn Department Bush Department Plowing Department

Labor costs 2,500 hours 1,200 hours 4,300 hours

Gas costs 1,500 gallons 800 gallons 3,700 gallons

Invoices 1,600 invoices 400 invoices 500 invoices

Required -

1. How much of the labor costs will be assigned to the Lawn Department?

2. How much of the total overhead costs will be assigned to the Lawn Department?