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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Subject :- Accounting 

Walsh Corporation uses an activity-based costing system with three activity cost pools. The
company has provided the following data concerning its costs:
Costs:
Wages and salaries $420,000
240,000
220,000
$880,000
Depreciation
Occupancy
Total
The distribution of resource consumption across the three activity cost pools is given below:
Activity Cost Pools
Assembly Setting Up Other Total
10%
75%
15% 100%
5%
50%
45% 100%
30%
35%
35% 100%
How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity
cost pool?
Wages and salaries
Depreciation
Utilities
Select one:
$264,000
b. $120,000
c. $132,000
d. $88,000
a.
Transcribed Image Text:Walsh Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Costs: Wages and salaries $420,000 240,000 220,000 $880,000 Depreciation Occupancy Total The distribution of resource consumption across the three activity cost pools is given below: Activity Cost Pools Assembly Setting Up Other Total 10% 75% 15% 100% 5% 50% 45% 100% 30% 35% 35% 100% How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity cost pool? Wages and salaries Depreciation Utilities Select one: $264,000 b. $120,000 c. $132,000 d. $88,000 a.
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