Question
Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Costs: Wages and salaries
Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:
Costs: |
|
Wages and salaries | $ 500,000 |
Depreciation | 100,000 |
Occupancy | 75,000 |
Total | $ 675,000 |
The distribution of resource consumption across the three activity cost pools is given below:
| Activity Cost Pools |
| ||
|
| Order |
|
|
| Fabricating | Processing | Other | Total |
Wages and salaries | 70% | 20% | 10% | 100% |
Depreciation | 50% | 20% | 30% | 100% |
Occupancy | 20% | 50% | 30% | 100% |
How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity cost pool?
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