Question

Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided...

Eccles Corporation 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:

Wages and salaries $ 312,000
Depreciation 256,000
Utilities 160,000
Total $ 728,000

Distribution of resource consumption:

Activity Cost Pools
Assembly Setting Up Other Total
Wages and salaries 40% 35% 25% 100%
Depreciation 20% 30% 50% 100%
Utilities 25% 60% 15% 100%

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Homework Answers

Answer #1

Answer:

Total $216,000 would be allocated in the first-stage allocation to the Assembly activity cost pool

Explanation:

Assembly Clarification
Wages and salaries              124,800 ($312,000*40%)
Depreciation                51,200 ($256,000*20%)
Utilities                40,000 ($160,000*25%)
Total cost allocated at 1st statge             216,000
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