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

Question 41

Multiple Choice

Teecorp Company provides the following ABC costing information:
 Activities  Total Costs  Activity-cost drivers  Labor $320,0008,000 hours  Gas $36,0006,000 gallons  Invoices $40,0002,500 invoices  Total costs $396,000\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:
 Lawn Department  Bush Department  Plowing Department  Labor 2,500 hours 1,200 hours 4,300 hours  Gas 1,700 gallons 800 gallons 3,500 gallons  Invoices 1,600 invoices 400 invoices 500 invoices \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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