Abrams Ltd. uses an activity-based costing system with three activity cost pools. The following information is provided: Costs Amount ($) Wages and salaries 215,000 Depreciation 123,000 Utilities 118,000 Total $456,000 Activity Cost Pools Allocation Factors Assembly Setting Up Other Wages and salaries 0.058 32% 12% Depreciation 0.034 48% 22% Utilities 0.24 38% 28% How much total cost would be allocated to the Assembly activity cost pool?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter19: Variable Costing (varcost)
Section: Chapter Questions
Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...
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How much total cost would be allocated to the Assembly activity cost pool?

Abrams Ltd. uses an activity-based costing system with three activity cost
pools. The following information is provided:
Costs
Amount ($)
Wages and salaries 215,000
Depreciation
123,000
Utilities
118,000
Total
$456,000
Activity Cost Pools Allocation Factors
Assembly Setting Up Other
Wages and salaries 0.058 32%
12%
Depreciation
0.034
48%
22%
Utilities
0.24
38%
28%
How much total cost would be allocated to the Assembly activity cost
pool?
Transcribed Image Text:Abrams Ltd. uses an activity-based costing system with three activity cost pools. The following information is provided: Costs Amount ($) Wages and salaries 215,000 Depreciation 123,000 Utilities 118,000 Total $456,000 Activity Cost Pools Allocation Factors Assembly Setting Up Other Wages and salaries 0.058 32% 12% Depreciation 0.034 48% 22% Utilities 0.24 38% 28% How much total cost would be allocated to the Assembly activity cost pool?
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