Dog's Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Labor $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 2,500 hours 1,200 hours 4, 300 hours Gas 1, 700 gallons 800 gallons 3, 500 gallons Invoices 1,600 invoices 400 invoices 500 invoices How much of the total costs will be assigned to the Lawn Department? Group of answer choices $134,500 $134, 600 $135,800 $135,600
Dog's Company provides the following ABC costing information: Activities Total Costs Activity - cost drivers Labor $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 2,500 hours 1,200 hours 4, 300 hours Gas 1, 700 gallons 800 gallons 3, 500 gallons Invoices 1,600 invoices 400 invoices 500 invoices How much of the total costs will be assigned to the Lawn Department? Group of answer choices $134,500 $134, 600 $135,800 $135,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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