Activity Details:Activity 1:Cost Driver: Consulting HoursCost: $600,000Consulting Hours: 6,000Activity 2:Cost Driver: Support HoursCost: $400,000Support Hours:...
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Accounting
Activity Details:
- Activity 1:
- Cost Driver: Consulting Hours
- Cost: $600,000
- Consulting Hours: 6,000
- Activity 2:
- Cost Driver: Support Hours
- Cost: $400,000
- Support Hours: 4,000
Requirements:
- Allocate costs to services based on activity drivers.
- Calculate the total cost for each service.
- Present the ABC cost allocation in a detailed table format.
- Discuss the benefits of using ABC in cost management for service industries.
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