Happy Valley Land and Snow Company provides the following ABC costing information:ActivitiesTotal CostSActivity-cost driversLabor hours$320,0008,000 hoursGas$36,0006,000 gallonsInvoices$40,0002,500 invoicesTotal costs$396,000The above activities used by their three departmnents are:Lawn Department Bush Department Plowing DepartmentLabor hours2,500 hours1,200 hours4,300 hoursGas1,500 gallons800 gallons3,700 gallonsInvoices1,600 invoices400 invoices500 invoicesHow much of invoice cost will be assigned to the Bush Department?

Name: Happy Valley Land and Snow Company provides the following ABC costing
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Description: Happy Valley Land and Snow Company provides the following ABC costing information:ActivitiesTotal CostSActivity-cost driversLabor hours$320,0008,000 hoursGas$36,0006,000 gallonsInvoices$40,0002,500 invoicesTotal costs$396,000The above activities use

Cost assigned to Bush department = (Total cost/activity drivers ) × lawn department portion of…

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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 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?

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

Section: Chapter Questions

Problem 1Q

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