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 invoice cost will be assigned to the Bush Department?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 departmnents 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 invoice cost will be assigned to the Bush Department?
Transcribed Image Text: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 departmnents 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 invoice cost will be assigned to the Bush Department?
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