Question

In: Accounting

Mayeux Corporation uses an activity-based costing system with three activity cost pools.


 Mayeux 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   $ 320,000

 Depreciation   160,000

 Utilities   240,000

 Total  $720,000

 

Distribution of resource consumption: 

Activity Cost Pools 

image.png

 

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

A) $360,000 B) $336,000 C) $288,000 D) $348,000

Solutions

Expert Solution

Calculate setting up activity cost pool under first stage allocation :

Setting up
Wages and salaries 128000
Depreciation 88000
Utilities 120000
Total 336000

so answer is b) $336,000


Related Solutions

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...
Corporation has an activity-based costing system with three activity cost pools—Processing, Supervising, and Other. In the...
Corporation has an activity-based costing system with three activity cost pools—Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $73,000 Indirect labor $1,000 Distribution of Resource Consumption Across Activity Cost Pools: Processing Supervising Other Equipment expense 20% 10% 70% Indirect labor 20% 20% 60% In...
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In...
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 128,000 Indirect labor $ 11,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.20 0.60 0.20...
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In...
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:   Overhead costs:   Equipment expense $53,000   Indirect labor $6,400 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other   Equipment expense 0.50     0.40     0.10...
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In...
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 83,000 Indirect labor $ 8,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.40 0.50 0.10...
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In...
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:   Overhead costs:   Equipment expense $125,000   Indirect labor $5,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other   Equipment expense 0.40     0.40     0.20...
Groleau Corporation has an activity-based costing system with three activity cost pools-- Processing, Setting Up, and...
Groleau Corporation has an activity-based costing system with three activity cost pools-- Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the...
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other....
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $87,000Supervisory expense  $ 9,400 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost PoolsMachiningOrder FillingOtherEquipment expense0.600.200.20Supervisory expense0.600.100.30Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs...
3. Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and...
3. Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.                                                                Activity Cost Pools Machining Setting Up Other Total Equipment depreciation $ 8800 $ 47,200 $ 23,200 $ 79,200 Indirect labor 3600 2600 3800 10,000 Total $ 12,400 $ 49,800 $ 27,000 $ 89,200 Costs in the...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT