FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please I need answer for all parts. If you can't answer all parts just skip/leave. Solve with all working and do not say about your guidelines. I will downvote if incomplete and incorrect. Upvote if complete and correct. Thanks! Please double underline provide answer with all working for each and every part.

 

2) Teecorp Company provides the following ABC costing information:
Activities
Labor
Total Costs
$320,000
Gas
$36,000
$40.000
$396.000
Invoices
Total costs
Activity-cost drivers
8,000 hours
6,000 gallons
2,500 invoices
The above activities used by their three departments are:
Lawn Department
2,500 hours
1,700 gallons
1,600 invoices
Labor
Gas
Invoices
Bush Department
1,200 hours
800 gallons
400 invoices
Plowing Department
4,300 hours
3,500 gallons
500 invoices
a. How much of the labor cost will be assigned to the Bush Department?
b. If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?
c. How much of invoice cost will be assigned to the Bush Department?
d. How much of the gas cost will be assigned to the Lawn Department?
e. How much of the total cost will be assigned to the Plowing Department?
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Transcribed Image Text:2) Teecorp Company provides the following ABC costing information: Activities Labor Total Costs $320,000 Gas $36,000 $40.000 $396.000 Invoices Total costs Activity-cost drivers 8,000 hours 6,000 gallons 2,500 invoices The above activities used by their three departments are: Lawn Department 2,500 hours 1,700 gallons 1,600 invoices Labor Gas Invoices Bush Department 1,200 hours 800 gallons 400 invoices Plowing Department 4,300 hours 3,500 gallons 500 invoices a. How much of the labor cost will be assigned to the Bush Department? b. If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate? c. How much of invoice cost will be assigned to the Bush Department? d. How much of the gas cost will be assigned to the Lawn Department? e. How much of the total cost will be assigned to the Plowing Department?
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