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?
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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