Question
Gutknecht 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
Gutknecht 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: | ||
|---|---|---|
| Wages and salaries | $ 300,000 | |
| Depreciation | 180,000 | |
| Utilities | 240,000 | |
| Total | $ 720,000 | |
Distribution of resource consumption:
| Activity Cost Pools | Total | ||||
|---|---|---|---|---|---|
| Assembly | Setting Up | Other | |||
| Wages and salaries | 35% | 40% | 25% | 100% | |
| Depreciation | 5% | 60% | 35% | 100% | |
| Utilities | 10% | 60% | 30% | 100% | |
How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?
Multiple Choice
-
$138,000
-
$180,000
-
$210,000
-
$216,000
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Cross-Border Mergers And Acquisitions UK Dimensions
Authors: Moshfique Uddin, Agyenim Boateng
1st Edition
0415836603, 9780415836609
