Columbus Company provides the following ABC costing information:

The above activities used by their three departments are:

How much of the gas cost will be assigned to the Lawn Department?
A) $1,800
B) $3,800
C) $2,400
D) $8,000

Question

Columbus Company provides the following ABC costing information:

The above activities used by their three departments are:

How much of the gas cost will be assigned to the Lawn Department?
A) $1,800 
B) $3,800 
C) $2,400 
D) $8,000

Quizplus · Accepted Answer

Gas cost = ($8,000 ÷ 4,000 gallons) × 1,900 gallons = $3,800

Columbus Company Provides the Following ABC Costing Information