Question

Hosley Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Costs: $360,000 Wages and salaries Depreciation 100,000 120,000 Осcирancy $580,000 Total The distribution of resource consumption across the three activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other Total 408 10% 100% 50% Wages and salaries 100 Depreciation 45% 10% 45% 35% 100% Осcирancy 5 % 608 How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?

Answer 1

Answer: $123,000

Activity Cost Pools Order Processing Fabricating Other Total Wages and salaries Depreciation Occupancy Total 180000 144000 36000 360000 10000 45000 45000 100000 6000 42000 72000 120000 123000 196000 261000 580000