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Gallani Corporation uses an activity-based costing (ABC) system with three activity pools. Gallani provides the following data about its overhead costs and ABC system: Overhead
Gallani Corporation uses an activity-based costing (ABC) system with three activity pools. Gallani provides the following data about its overhead costs and ABC system: Overhead costs: Salaries $420,000 Depreciation $160,000 Utilities $240,000 Total $820,000 Distribution of resource consumption: Activity. Cost Pools Fabrication Setups Assembly. Salaries 50% 40% 10% Depreciation 10% 55% 35% Utilities 15% 50% 35% How much overhead cost, in total, would be allocated in the first-stage allocation to the Fabrication pool? $360.000 Fung 60% 10% 30% Equipment depreciation Supervisory expense 60% 20% 20% Machining costs are assigned to products using machine hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity pool are not assigned to products. Activity data for the company's two products are as follows: MHS Number of Orders 6,900 200 Product Product B 3,100 800 What is the activity rate for the Order Filling pool? O $18.00 per order O $5.90 per order O $2.82 per order O $3.18 per order O None of the above
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