Question

CAS McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 ders who process and pay supplier invoices. The total cost of their salaries is $750.000. The work distribution for the activities that they perform is as follows: Activity Percentage of Time on Each Activity Comparing source documents Resolving discrepancies 555 355 Required: Assign the cost of labor to each of the three activities in the counts payable department. Ro Comparing source documents Resolving discrepancies Draconing

Answer 1

Calculate cost allocation

		Cost assignment
Comparing source documents	750000*10%	75000
Resolving discrepancies	750000*55%	412500
Processing payment	750000*35%	262500