1.

Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

Costs:
Wages and salaries	$312,000
Depreciation	256,000
Utilities	160,000
Total	$728,000

Distribution of resource consumption:
	Activity Cost Pools
	Assembly	Setting up	Other	Total
Wages and salaries	40%	35%	25%	100%
Depreciation	20%	30%	50%	100%
Utilities	25%	60%	15%	100%

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

A	$216,000
B	$203,333
C	$291,200
D	$182,000

2

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	10,000	machine-hours
Order processing	125	orders
Other	N/A

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries	$470,000
Depreciation	174,000
Occupancy	161,000
Total	$805,000

The distribution of resource consumption across activity cost pools is given below:

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	20%	70%	10%	100%
Depreciation	5%	30%	65%	100%
Occupancy	10%	60%	30%	100%

The activity rate for the Fabrication activity cost pool is closest to:

A	$20.13 per machine-hour
B	$3.26 per machine-hour
C	$11.88 per machine-hour
D	$1.66 per machine-hour