V Company uses an activity-based costing system with three activity cost pools. The company has provided the
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Question:
V Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:
Costs: | |
Wages and salaries | $420,000 |
Depreciation | 100,000 |
Occupancy | 200,000 |
Total | $720,000 |
Here is the information for the Fabricating activity cost pool:
Fabricating | |
Wages and salaries | 30% |
Depreciation | 5% |
Occupancy | 15% |
How much cost should be allocated to the Fabricating cost pool?
$135,000 | ||
$174,000 | ||
$162,000 | ||
$180,000 |
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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