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

question 100

Essay

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:
$$\begin{array} { | l | r | } \hline \text { Costs: } & \\\hline \text { Wages and salaries } & \$ 540,000 \\\hline \text { Travel expenses } & 100,000 \\\hline \text { Other experses } & \$ 140,000 \\\hline \text { Total } & \$ 780,000 \\\hline\end{array}$$
Distribution of Resource Consumption:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Activity Cost Pools }$$$\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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Definitions:

Occupational Prestige

The subjective evaluation people give to jobs as better or worse than others.

Subjective Evaluations

Assessments based on personal opinions, feelings, or tastes, rather than objective measurements.

Socioeconomic Status

A measure of class standing, typically indicated by income, occupational prestige, and educational attainment.

Model Minority

The model minority is a stereotype that presents a particular ethnic group as having higher socioeconomic success than the average, potentially masking underlying challenges.