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Fife & Jones PLC,a Consulting Firm,uses an Activity-Based Costing in Which

Question 107

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Fife & Jones 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 $540,000 Travel expenses 100,000 Other experses $140,000 Total $780,000\begin{array} { | l | r | } \hline \text { Costs: } & \\\hline \text { Wages and salaries } & \$ 540,000 \\\hline \text { Travel expenses } & 100,000 \\\hline \text { Other experses } & \$ 140,000 \\\hline \text { Total } & \$ 780,000 \\\hline\end{array}
Distribution of Resource Consumption:
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad  Activity Cost Pools \text { Activity Cost Pools } Working on  Engagements  Busines  Development  Other  Total  Wages and salaries 50%20%30%100% Travel experses 60%30%10%100% Other experses 35%25%40%100%\begin{array} { | l | r | r | r | r | } \hline & \begin{array} { r } \text { Working on } \\\text { Engagements }\end{array} & \begin{array} { r } \text { Busines } \\\text { Development }\end{array} & \text { Other } & \text { Total } \\\hline \text { Wages and salaries } & 50 \% & 20 \% & 30 \% & 100 \% \\\hline \text { Travel experses } & 60 \% & 30 \% & 10 \% & 100 \% \\\hline \text { Other experses } & 35 \% & 25 \% & 40 \% & 100 \% \\\hline\end{array}
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?

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