Allen Company has three departmentd - 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 , total costs, Activity-cost divers 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 the their three departments are: Lawn Department labor 2,500 hours, gas 1,700 gallons, invoices 1,600. Bush department labor 1,200 hours, gas 800 gallons, invoices 400. Plowing department labor 4,300 hours, gas 3,500 gallons, invoices 500. How much of the labor cost will be assigned to the Bush Department?
Allen Company has three departmentd - 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 , total costs, Activity-cost divers
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 the their three departments are:
Lawn Department labor 2,500 hours, gas 1,700 gallons, invoices 1,600.
Bush department labor 1,200 hours, gas 800 gallons, invoices 400.
Plowing department labor 4,300 hours, gas 3,500 gallons, invoices 500.
How much of the labor cost will be assigned to the Bush Department?
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