Problem: Figge & 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:
Wages and salaries $420,000
Travel expenses 120,000
Other expenses 180,000
Total $720,000
Distribution of resource consumption:
Activity Cost Pools
Working On
Engagements Business
Development Other Total
Wages and salaries 50% 20% 30% 100%
Travel expenses 45% 45% 10% 100%
Other expenses 15% 45% 40% 100%
Required:
Q1. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
Q2. How much cost, in total, would be allocated to the Business Development activity cost pool?
Q3. How much cost, in total, would be allocated to the Other activity cost pool?