"Insomniax" is a beverage company that produces and sells energy drinks loaded with sugar and caffeine. You have been given the production budget for the upcoming year. You quickly notice that the intern has managed to leave out a number of figures on the sheet. Additionally, you've been told that the desired level of inventory at the end of a quarter is 25% of the next quarters' expected sales. At the end of the previous quarter, the production department met that target. You've been asked to fill in the missing information.

Production Budget

Quarter 1Quarter 2Quarter 3Quarter 4Quarter 5

Budgeted15 00025 00010 00015 00020 000

Sales

Add: Desired625025003750?

Ending

Inventory

Total Needs21 25027 500??

Less:

Beginning

Inventory5 0006 2502 5003 750

Required

Production????

How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?

Question 43 options:

$150,000.

$234,000.

$255,000.

$360,000.

How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool?

Question 44 options:

$120,000.

$255,000.

$282,000.

$390,000.

Question 45(2 points)

Saved

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?

Question 45 options:

$0.

$60,000.

$84,000.

$120,000.