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Diehl Corporation uses an ABC system with three activity pools. The company has provided the following data regarding its costs and its ABC system. $480,000
Diehl Corporation uses an ABC system with three activity pools. The company has provided the following data regarding its costs and its ABC system. $480,000 Indirect Costs Manufacturing OH cost Selling and administrative expense $100,000 According to managers at Diehl, the distribution of resource consumption by activity pool is as follows: Activity Pools Number Order Customer of Total Size Support Batches Manufacturing 5% 85% 10% 100% OH Selling and 10% 50% 40% 100% admin You have been asked to complete the first stage allocation of indirect costs to the activity pools. How much indirect cost. In total, would be allocated in the first stage allocation to the Customer Support activity pool? $34.000 $100,000 administrative expense According to managers at Diehl, the distribution of resource consumption by activity pool is as follows: Activity Pools Number Order Customer of Total Size Support Batches Manufacturing 10% 100% OH Selling and 10% admin 50% 40% 100% You have been asked to complete the first-stage allocation of indirect costs to the activity pools. How much indirect cost, in total, would be allocated in the first stage allocation to the Customer Support activity pool? $34,000 $88.000 $240.000 $458.000 None of the above
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