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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Mm.7.
Subject:- account

Transcribed Image Text:Figge and Mathews Public Limited Company, a consulting firm, uses an activity-based costing in which there are three activity cost
pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:
Wages and solaries
Travel expenses
Other expense8
Total
Distribution of resource consumption:
Wages and salaries
Travel expenses
Other expenses
$465,000
165,000
225.000
$855,000
b
C
Working On
Engagements
50%
40%
10%
Activity Cost Pools
business Development
20%
40%
50%
Other
30%
20%
40%
Required:
a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
b. How much cost, in total, would be allocated to the Business Development activity cost pool?
c. How much cost, in total, would be allocated to the Other activity cost pool?
Activity Cost Pool
Total Cost
Working On Engagements
Business Development
Other
Total
100%
100%
100%
Expert Solution
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