Answer the following questions using the information below:
Happy Valley Land and Snow 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 Plowing Department?
A)$50,000
B)$22,200
C)$30,000
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Happy Valley Land and Snow 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 Plowing Department?
A)$50,000 
B)$22,200 
C)$30,000 
D)None of these answers are correct.

Quizplus · Accepted Answer

To calculate the gas cost assigned to the Plowing Department, we need to find the percentage of total gas used by that department. From the table, we can see that the Plowing Department uses 30% of the total gas, which is $74,000. Therefore, the gas cost assigned to the Plowing Department is $74,000 x 30% = $22,200.

Answer the Following Questions Using the Information Below