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
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: Kosts: Manufacturing overhead Selling and administrative expenses Total $360,000 240.000 $600,00 Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size 258 60% Activity Cost Pools Customer Support 65 20 Other! 10 20 Totall 100 100% 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, 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
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