Invoice cost will be assigned to the bush department

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Reference no: EM131306242

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

Gas                                             1,500 gallons           800 gallons                  3,700 gallons

Invoices                                      1,600 invoices         400 invoices                   500 invoices

How much of the labor cost will be assigned to the Lawn Department?

A) $100,000

B) $25,600

C) $40,000

D) None of these answers are correct.

How much of the gas cost will be assigned to the Plowing Department?

A) $50,000

B) $22,200

C) $30,000

D) None of these answers are correct.

How much of invoice cost will be assigned to the Bush Department?

A) $6,400

B) $8,000

C) $25,600

D) $40,000

How much of the gas cost will be assigned to the Lawn Department?

A) $4,800

B) $20,000

C) $9,000

D) $22,200

Reference no: EM131306242

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