Question

Eccles 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	$	261,000
Depreciation		252,000
Utilities		143,000
Total	$	656,000

Distribution of resource consumption:

	Activity Cost Pools
	Assembly	Setting Up		Other	Total
Wages and salaries	35%	30%		35%	100%
Depreciation	35%	30%		35%	100%
Utilities	25%	65%		10%	100%

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

rev: 11_09_2017_QC_CS-108764

Garrison 16e Rechecks 2018-07-24

Multiple Choice

• $202,633

• $215,300

• $229,600

• $164,000

Answer 1

Correct answer-----------$215,300

Working

Total Cost assigned to assembly activities
35% of wages and salaries	$            91,350.00
35% of Depreciation	$            88,200.00
25% of utilities	$            35,750.00
Total Cost assigned to assembly activities	$         215,300.00