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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 Order Size Customer Support 85% Other Total 53 10% 100% Manufacturing overhead Selling and administrative expenses 60% 20% 20% 100% 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 Customer Support activity cost pool? Multiple Choice $493,000 $116,000 $428.000
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