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Fidler & Jenkins PLC, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:
Wages and salaries............
$620,000
Travel expenses.................
140,000
Other expenses..................
120,000
Total..................................
$880,000
Distribution of resource consumption:
Activity Cost Pools
Working On Engagements
Business Development
Other
Total
Wages and salaries......
60%
10%
30%
100%
Travel expenses...........
50%
40%
Other expenses............
35%
25%
Required:
a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
b. How much cost, in total, would be allocated to the Business Development activity cost pool?
c. How much cost, in total, would be allocated to the Other activity cost pool?
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