Happy Valley Land and Snow Company provides the following ABC costing information: Activities Total Costs...
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Happy Valley Land and Snow Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor hours $420,000 5,000 hours Gas $120,000 3,000 gallons Invoices $100,000 2,500 invoices Total costs $640,000 The above activities used by their three departments are: Lawn Department Bush Department Plowing Department Labor hours 2,500 hours 1,500 hours 1,000 hours Gas 1,000 gallons 1,000 gallons 1,000 gallons Invoices 500 invoices 1,000 invoices 1,000 invoices
a) How much of the total costs will be assigned to the Lawn Department? $ _________ b) What would have been the costs for each department if these total costs had been allocated equally? $ __________
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