McNair Company provides the following activity-based costing information:
Activities
Total Costs
Activity-cost drivers
Labor hours
$160,000
8,000 hours
Gas
$18,000
6,000 gallons
Invoices
$20.000
2,500 invoices
Total costs
$198,000
The above activities used by their three departments are:
Lawn
Brush
Department
Department
Plowing
Department
Labor
2,500 hours
1,200 hours
4,300 hours
hours
Gas
1,500 gallons
800 gallons
3,700 gallons
Invoices
1,600 invoices
400 invoices
500 invoices
How much of the labor cost will be assigned to the Lawn Department?
$50,000
$20,000
$12,800
$15,000