Moose Wood Outfitters allocate costs from the DESIGN activity to three other project-related activities. This table shows the details of the allocation to perform:
| Pool |
Driver |
Allocation |
Post-To activity |
| Activity: DESIGN Account Categories: Material $1,000, Labor $3,000, Outside Services $6,000 |
20% |
$2,000 |
CARPENTRY Account category: Design Costs |
| 30% |
$3,000 |
FIXTURES Account category: Design Costs |
| 50% |
$5,000 |
DECORATING Account category: Design Costs |
| Total Pool = $10,000 |
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The posting option they select affects the transactions created. These examples show the results of each option. Note that the total allocation amount for each activity remains the same.
Consolidate option
| Allocation amount |
Activity |
Account category |
| $2,000 |
CARPENTRY |
Design Costs |
| $3,000 |
FIXTURES |
Design Costs |
| $5,000 |
DECORATING |
Design Costs |
Pool option
| Amount |
Activity |
Account category |
| $200 |
CARPENTRY |
Material |
| $600 |
CARPENTRY |
Labor |
| $1,200 |
CARPENTRY |
Outside Services |
| $300 |
FIXTURES |
Material |
| $900 |
FIXTURES |
Labor |
| $1,800 |
FIXTURES |
Outside Services |
| $500 |
DECORATING |
Material |
| $1,500 |
DECORATING |
Labor |
| $3,000 |
DECORATING |
Outside Services |
Detail option
| Amount |
Activity |
Account category |
| $200 |
CARPENTRY |
Design Costs |
| $600 |
CARPENTRY |
Design Costs |
| $1,200 |
CARPENTRY |
Design Costs |
| $300 |
FIXTURES |
Design Costs |
| $900 |
FIXTURES |
Design Costs |
| $1,800 |
FIXTURES |
Design Costs |
| $500 |
DECORATING |
Design Costs |
| $1,500 |
DECORATING |
Design Costs |
| $3,000 |
DECORATING |
Design Costs |