In: Accounting
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
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