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Fields & Maaner 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 $560,000 Travel expenses 140,000 Other expenses 140,000 Total $840,000 Distribution of resource consumption: Working On Business Activity Cost Pools Engagements Development Other Total Wages and salaries 45% 25% 30% 100% Travel expenses 60% 30% 10% 100% Other expenses 30% 30% 40% 100%
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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