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Instead of a plantwide predetermined overhead rate, companies can base the allocation of overhead on ABC. With the ABC costing system, the company determines activity
Instead of a plantwide predetermined overhead rate, companies can base the allocation of overhead on ABC. With the ABC costing system, the company determines activity cost pools, and activity measures - which are often the \# of the cost drive l.e, number of employees, etc. Based on the fictitious information given below, complete the first stage allocation of costs to activity cost pools. The following costs will be assigned using the ABC system: The distribution of resource consumption across the activity cost pools is as follows: You are responsible for the first stage allocations of costs to activity cost pools by filling in the table below. Each entry in the table is derived by multiplying the total cost for the cost category by the percentage taken from the table below that shows the distribution of resource consumption: Travel Pickup and Delivery Service Detomer Other Totals Driver and guard wages. $ Vehicle operating expense. $ $ $ Vehicle depreciation. Customer representative salaries and expenses. Office expenses. Administrative expenses. Total cost
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