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

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

ekkarill92 answered 2 years ago

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