when the bids on to be s to the client Once a project is a n

when the bids on to be s to the client. Once a project is a n and contract staff is largely responsible for contract The activity cost pools and their activity measures are listed are no direct labor or direct materials costs in an u contracts to bids to the running time of the completed this means that the 10

Solution

Explanation

Standard Activity cost rates are given in the first table of the question. Activity demands for 5 Local commercials is given in the second table. As ABC method allocates costs based on activities being performed, we have to mutiply the activity demand with activity cost rate per activity.

Question - 2

Margin earned = Sales - cost of serving = 170000 - 247000 = - 77,000

Animation concept	= 25 * 5400	135000
Animation production	= 10*8200	82000
Contract administration	= 5 * 6000	30000
	Cost of serving	247000