Question

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Kassabian Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and itsactivity-based costing system:
Costs:
Wages and salaries $440,000
Depreciation 220,000
Utilities 200,000
Total $860,000

Distribution of resource consumption:
Activity cost pools
Total other setting up Assembly
100% 20% 30% 50% Wages and salaries
100% 40% 40% 20% Depreciation
100% 40% 35% 25% Utilities

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

Answer 1

Total Assembly Cost:
Wages and Salaries: 50% × $440,000 $220,000
Depreciation: 20% ×$220,000 $44,000
Utilities: 25% × $200,000 $50,000
Total $314,000

Answer 2

Total Assembly Cost:
Wages and Salaries: 50% × $440,000 $220,000
Depreciation: 20% ×$220,000 $44,000
Utilities: 25% × $200,000 $50,000
Total $314,000

Answer 3

Wages and Salaries: 50% × $440,000	$220,000
Depreciation: 20% ×$220,000	$44,000
Utilities: 25% × $200,000	$50,000
Total	Total $314,000