Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and
Required information Dierich Company 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: Manufacturing overhead Selling and administrative expenses Total $600,000 220,000 $820,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing 15% 75% 10% 100% overhead Selling and 60% 20% 20% 100% administrative expenses The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Multiple Choice $123,000 $222,000 $307,500 $492,000 4 How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? Multiple Choice $164,000 $389,500 $494,000 $615,000 How much cost, in total, should not be allocated to orders and customer support in the second stage of the allocation process if the activity-based costing system is used for internal decision making? Multiple Choice $0 $82.000 $104.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started