Answer the Following Questions Using the Information Below:
Kosciuszko Land

question 6

Multiple Choice

Answer the following questions using the information below:
Kosciuszko Land and Snow Company provides the following ABC costing information:
$$\begin{array}{l}\begin{array} { l r c } \text { Activities } & \text { Total Costs } & \text { Activity-cost Drivers } \\\text { Labour hours } & \$ 240000 & 12000 \text { hours } \\\text { Fuel } & \$ 27000 & 9000 \text { litres } \\\text { Invoices } & \$ 30000 & 3750 \text { invoices } \\ { \text { Total costs } } & \$ 1912000 &\end{array}\\\\\text { The above activities used by their three departments are: }\\\\\begin{array} { l c c c } & \text { Lawn Department } & \text { Bush Department } & \text { Ploughing Department } \\\text { Labour hours } & 2500 \text { hours } & 1200 \text { hours } & 4300 \text { hours } \\\text { Fuel } & 1500 \text { litres } & 800 \text { litres } & 3700 \text { litres } \\\text { Invoices } & 1600 \text { invoices } & 400 \text { invoices } & 500 \text { invoices }\end{array}\end{array}$$
-How much of the total cost will be assigned to the Ploughing Department?

• A)$1 912 000
• B)$101 100
• C)$89 000
• D)$67 300

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Definitions:

Accounts Payable

Liabilities owed by a company to creditors for goods and services received but not yet paid for.

Capital Stock

The total number of shares that a corporation is authorized to issue as stated in its corporate charter.

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.