Question
Grammer Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Costs: Wages and
Grammer Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:
| Costs: |
|
| Wages and salaries | $240,000 |
| Depreciation | 160,000 |
| Occupancy | 140,000 |
| Total | $540,000 |
The distribution of resource consumption across the three activity cost pools is given below:
|
| Activity Cost Pools |
| ||
|
| Fabricating | Order Processing | Other | Total |
| Wages and salaries | 30% | 45% | 25% | 100% |
| Depreciation | 20% | 35% | 45% | 100% |
| Occupancy | 5% | 65% | 30% | 100% |
How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?
| $135,000 | ||
| $174,000 | ||
| $162,000 | ||
| $180,000 |
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