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Diehl 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
Diehl 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: Manufacturing overhead Selling and administrative expenses Total $480,000 100,000 $580,000 Distribution of resource consumption: Activity Cost Pools Customer Support 85% 20% Order Size Manufacturing overhead Selling and 60% administrative expenses Other 10X Total 100% 100% 20 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, should NOT be allocated to orders and products in the second stage of the allocation process if the activity based costing system is used for internal decision-making? Multiple Choice $116,000 $58.000 S68.000
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