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Author Question: Columbus Company provides the following ABC costing information: ActivitiesTotal CostsActivity-cost ... (Read 58 times)

MGLQZ

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on: Mar 6, 2021

Question 1

Activity-based costing is most likely to yield benefits for companies ________.
◦ with complex product design processes that vary significantly from product to product
◦ with operations that remain fairly consistent  across product lines
◦ in a monopolistic market
◦ having nominal percentage of indirect costs

Question 2

Columbus Company provides the following ABC costing information:

ActivitiesTotal CostsActivity-cost drivers
Labor$392,0008,000hours
Gas$30,0005,000gallons
Invoices$180,0007,500invoices
Total costs$602,000

The above activities used by their three departments are:

Lawn DepartmentBush Department Plowing 
Department
Labor2,600hours1,300hours4,100 hours
Gas1,800gallons1,000gallons 2,200 gallons
Invoices1,600invoices100invoices 5,800 invoices

How much of the labor cost will be assigned to the Bush Department?
◦ $127,400
◦ $63,700
◦ $200,900
◦ $97,825
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by MGLQZ on Mar 6, 2021

amynguyen1221

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Reply #1 on: Mar 6, 2021
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MGLQZ

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

jomama

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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