Question
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
| 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 | $324,000 |
| Depreciation | 225,000 |
| Utilities | 181,000 |
| Total | $730,000 |
| Distribution of resource consumption: | ||||
| Activity Cost Pools | ||||
| Assembly | Setting up | Other | Total | |
| Wages and salaries | 45% | 25% | 30% | 100% |
| Depreciation | 45% | 20% | 35% | 100% |
| Utilities | 10% | 60% | 30% | 100% |
| How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? |
$328,500
$265,150
$252,483
$73,000
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Knowledge Audit Complete Self Assessment Guide Practical Tools For Self Assesment
Authors: Gerardus Blokdyk
1st Edition
0655199837, 978-0655199830
