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Required information Skip to question Furniture Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the
Required information
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Furniture Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:
Costs:Manufacturing overhead$600,000Selling and administrative expenses300,000Total$900,000
Distribution of Resource Consumption:
Activity Cost PoolsOrder SizeCustomer SupportOtherTotalManufacturing overhead45%50%5%100%Selling and administrative expenses40%45%15%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 the costs to the activity cost pools.
How much cost, in total shouldnotbe 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?
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