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

Diehl 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: Manufacturing overhead $ 480,000 Selling and administrative expenses 100,000 Total $ 580,000 Distribution of resource consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 5% 85% 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 Order Size activity cost pool?

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Calculate How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool :

	Order Size	Customer support	Other	Total
Manufacturing overhead	24000	408000	48000	480000
Selling and administrative expenses	60000	20000	20000	100000
Total	84000	428000	68000	580000

so answer is 84000

ekkarill92 answered 2 years ago

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