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Dideda Company uses an activity-based costing (ABC) system with three activity cost pools. The company has provided the following data concerning its costs and its
Dideda Company uses an activity-based costing (ABC) system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:
- The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.
How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?
Distribution of Resource Consumption: Activity Cost Pools Order Customer Size Support 25% 65% 60% 20% Manufacturing Overhead Selling and Administrative Expenses Other 10% 20% Total 100% 100% Distribution of Resource Consumption: Activity Cost Pools Order Customer Size Support 25% 65% 60% 20% Manufacturing Overhead Selling and Administrative Expenses Other 10% 20% Total 100% 100%Step by Step Solution
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