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Author Question: Columbus Company provides the following ABC costing information: ActivitiesTotal CostsActivity-cost ... (Read 19 times)

EAugust

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Columbus Company provides the following ABC costing information:

ActivitiesTotal CostsActivity-cost drivers
Labor$336,0008,000hours
Gas$84,0007,000gallons
Invoices$180,0007,500invoices
Total costs$600,000

The above activities used by their three departments are:

Lawn DepartmentBush Department Plowing 
Department
Labor3,100hours1,500hours3,400 hours
Gas1,900gallons900gallons 4,200 gallons
Invoices1,300invoices400invoices 5,800 invoices

If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?
◦ $75.00 per hour
◦ $26.67 per hour
◦ $42.00 per hour
◦ $33.00 per hour


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Marked as best answer by EAugust on Mar 6, 2021

sarajane1989

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EAugust

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


Liddy

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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