Dideda Corporation uses an activity-based costing system with three activity cost pools. The company has provided the
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Question:
Costs: | |||
Manufacturing overhead | $ | 360,000 | |
Selling and administrative expenses | 240,000 | ||
Total | $ | 600,000 | |
Distribution of resource consumption: | ||||
Activity Cost Pools | ||||
Assembly | Setting Up | Other | Total | |
Manufacturing overhead | 25% | 65% | 10% | 100% |
Selling and administrative expenses | 60% | 20% | 20% | 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?
$255,000
$282,000
$120,000
$390,000
activitybased costing system Costs
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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