Question
DATA FOR SPLENDID COMPANY Splendid Company uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication
DATA FOR SPLENDID COMPANY Splendid Company uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication Order processing Other The Other activity cost pool is used to accumulate organization-sustaining costs. The company has provided the following data concerning its costs: 12,000 direct labor hours 1,000 orders Not applicable Wages and salaries $360,000 $240,000 $120,000 $720,000 Depreciation Occupancy Total The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other (Organization-Sustaining) Total 60% 15% 100% 35% 50% 100% 70% 20% 100% Wages and salaries 25% 15% 10% Depreciation Occupancy Refer to the data for Splendid Company above. How much of the Wages and Salaries will be assigned to the "Other (Organization-Sustaining)" activity cost pool in the first-stage allocation of overhead costs? O $54,000 $90.000 $216,000 O $360,000 Refer to the data for Splendid Company above. What is the total amount of overhead cost that will be assigned to the "Order Processing" activity cost pool in the first-stage allocation? $216,000 O $384,000 O $84,000 O $168,000 Question 8 Refer to the data for Splendid Company above. The activity rate (per direct labor hour) for the Fabrication activity cost pool is closest to: O $11.50 $7.50 $60.00 $384.00
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