Total ABC, LLC uses approximated ABC, using the two largest cost pools (do not include...

50.1K

Verified Solution

Question

Accounting

Total ABC, LLC uses approximated ABC, using the two largest cost pools (do not include the Other category in approximated ABC calculations).
Total ABC, LLC has the following budgeted overhead costs.
Maintenance Costs: 1,000,000
Administration Costs: 1,500,000
Power Costs: 800,000
The firm's ABC study shows the following percentage table.
Western Eastern Northern Southern Other
Maintenance 50%30%5%5%10%
Administration 20%20%0%10%50%
Power 30%30%10%10%20%
The firm's budgeted activity drivers are as follows.
Western activity cost pool: 20,000
Eastern activity cost pool: 90,000
Northern activity cost pool: 10,000
Southern activity cost pool: 99,000
The Loggan Job consumes the following activity drivers.
Western activity driver consumed: 200
Eastern activity driver consumed: 150
Northern activity driver consumed: 300
Southern activity driver consumed: 80
Assuming Loggan Job consumed $65,000 in direct costs, which of the following is the overhead cost of Loggan Job under approximated ABC (round to nearest cent if necessary)?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students