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Required information Skip to question Dideda Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning
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Dideda 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 | $340,000 |
Selling and administrative expenses | 250,000 |
Total | $590,000 |
Distribution of Resource Consumption:
Activity Cost Pools | ||||
Order Size | Customer Support | Other | Total | |
Manufacturing overhead | 25% | 50% | 25% | 100% |
Selling and administrative expenses | 60% | 30% | 10% | 100% |
Required information
Skip to question
Dideda 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 | $340,000 |
Selling and administrative expenses | 250,000 |
Total | $590,000 |
Distribution of Resource Consumption:
Activity Cost Pools | ||||
Order Size | Customer Support | Other | Total | |
Manufacturing overhead | 25% | 50% | 25% | 100% |
Selling and administrative expenses | 60% | 30% | 10% | 100% |
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 Customer Support activity cost pool?
Multiple Choice
$120,000
$255,000
$245,000
$390,000
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