Teecorp Company Provides the Following ABC Costing Information The Above Activities Used by Their Three Departments Are

question 127

Multiple Choice

Teecorp Company provides the following ABC costing information:
$$\begin{array} { l c c } \text { Activities } & \text { Total Costs } & \text { Activity-cost drivers } \\\text { Labor } & \$ 320,000 & 8,000 \text { hours } \\\text { Gas } & \$ 36,000 & 6,000 \text { gallons } \\\text { Invoices } & \$ 40,000 & 2,500 \text { invoices } \\\quad \text { Total costs } & \$ 396,000 &\end{array}$$ The above activities used by their three departments are:
$$\begin{array} { c c c } &\text { Lawn Department } & \text { Bush Department } & \text { Plowing Department } \\\text { Labor } & 2,500 \text { hours } & 1,200 \text { hours } & 4,300 \text { hours } \\\text { Gas } & 1,700 \text { gallons } & 800 \text { gallons } & 3,500 \text { gallons } \\\text { Invoices } & 1,600 \text { invoices } & 400 \text { invoices } & 500 \text { invoices }\end{array}$$
-How much of the labor cost will be assigned to the Bush Department?

• A) $42,000
• B) $48,000
• C) $40,000
• D) $50,000

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Definitions:

Articles of Incorporation

Official legal documents that establish a corporation's existence, outlining its name, purpose, structure, and other essential details.

Incorporation Statute

A legal document that establishes a corporation's existence under the laws of a specific state or jurisdiction.

Directors

Individuals elected by shareholders to manage the overall affairs of a corporation and set its strategic direction.

Shareholder's Meeting

An annual or special meeting held for the owners of a company's shares, to discuss company affairs, financial performance, and elect the board of directors.