Answers 4-6 only

Grammer Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerming its costs Costs: Wages and salaries $240,000 Depreciation 4) 60, Total The distribution of resource consumption across the three activity cost pools is given below: Activity Cest Pools Fabricating Order Processing Other Total 25% 100% 45% 100% 3096 1 00% Wages and salaries 30% 20% 5% 45% 35% 65% Occupancy How much cost, in total, would beallocated in the first-stage llocation to the Other activity cost pool? A) $135,000 B) $174,000 C) $180,000 D) $162,000 5) Budgets are used to plan and to control operations A) True B) False 6) Mciver Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining. S10,900; Order Filling, $10,500; and Other, $75,600. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Machining) Orders (Order Filling) 600 400 Product Ko Product QS 8,500 What is the overhead cost assigned to Product KO under activity-based costing? A) $48,500 B) $1,635 C)$6,300 D) $7,935