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Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office cos (labor, gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs $320,000 $36,000 $40.000 $396,000 Labor Gas Invoices Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1,600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices How much of the labor cost will be assigned to the Bush Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Answer: 59200

Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office cos (labor, gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs $320,000 $36,000 $40.000 $396,000 Labor Gas Invoices Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1,600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices How much of the labor cost will be assigned to the Bush Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Answer: 59200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office costs (labor, gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs $320,000 $36,000 Labor Gas Invoices $40,000 $396,000 Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1,600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours: 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices How much of the labor cost will be assigned to the Bush Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Answer: 59200
Transcribed Image Text:Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the allocation of its three office costs (labor, gas, invoices) among the three departments. The following information is provided about the office costs: Activities Labor Gas Invoices Total costs Total Costs $320,000 $36,000 Labor Gas Invoices $40,000 $396,000 Activity-cost drivers The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1,600 invoices 8,000 hours 6,000 gallons 2,500 invoices Bush Department 1,200 hours: 800 gallons 400 invoices Plowing Department 4,300 hours 3,500gallons 500 invoices How much of the labor cost will be assigned to the Bush Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Answer: 59200
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