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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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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%

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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