Figge and Mathews PLC, 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:
Distribution of resource consumption:
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?

Question

Figge and Mathews PLC, 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:

Distribution of resource consumption:

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?

Tamara S. Vassell · Accepted Answer

Final Answer :

All three parts can be answered using a first-stage allocation of costs. The amount in each cell in the table below is computed by multiplying the cost for the category by the percentage for the activity. For example, ${{[a(14)]:#,###}} is equal to ${{[a(1)]:#,###}} multiplied by {{[a(29)]:#,##0.00}}.
All three parts can be answered using a first-stage allocation of costs. The amount in each cell in the table below is computed by multiplying the cost for the category by the percentage for the activity. For example, ${{[a(14)]:#,###}} is equal to ${{[a(1)]:#,###}} multiplied by {{[a(29)]:#,##0.00}}.

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