Moose Wood Outfitters wants to allocate costs from the DESIGN
activity to three other project-related activities. This
table displays the details of the allocation they want 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
|
|
|
|
The posting option they select impacts the transactions created.
These three 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
|