Question

Salaries and wages
$452,000
Travel expense
122,000
Plan reproduction expense
142,000
Total
$716,000
Estimated Use of Cost Driver per Service
Project
Assignment
Business
Development
Other
Salaries and wages
60%
30%
10%
Travel expense
40%
40%
20%
Plan reproduction expense
35%
40%
25%
Calculate the total cost to be allocated to the (a) Project Assignment, (b) Business Development, and (c) Other activity cost pools ?

Answer 1

Answer:

Sure. The total cost allocated to each activity cost pool are shown in the following table:

| Activity Cost Pool | Total Cost Allocated|

|---|---|

| Project Assignment | $369,700.00 |

| Business Development | $241,200.00 |

| Other | $105,100.00 |

I hope this helps!

Explanation:

Code Used to find this

# Define the cost driver percentages as a dictionary

cost_driver_percentages = {

   "Salaries and wages": {"Project Assignment": 0.6, "Business Development": 0.3, "Other": 0.1},

   "Travel expense": {"Project Assignment": 0.4, "Business Development": 0.4, "Other": 0.2},

   "Plan reproduction expense": {"Project Assignment": 0.35, "Business Development": 0.4, "Other": 0.25},

}

# Define the total cost for each expense category

total_costs = {

   "Salaries and wages": 452000,

   "Travel expense": 122000,

   "Plan reproduction expense": 142000,

}

# Calculate the total cost allocated to each activity cost pool

activity_costs = {

   "Project Assignment": 0,

   "Business Development": 0,

   "Other": 0,

}

# Iterate through each expense category

for expense, cost in total_costs.items():

   # Iterate through each activity cost pool

   for activity, percentage in cost_driver_percentages[expense].items():

       activity_cost = cost * percentage

       activity_costs[activity] += activity_cost

# Print the total cost allocated to each activity cost pool

print("Total Cost Allocated:")

print(f"\tProject Assignment: ${activity_costs['Project Assignment']:,.2f}")

print(f"\tBusiness Development: ${activity_costs['Business Development']:,.2f}")

print(f"\tOther: ${activity_costs['Other']:,.2f}")