Question

the question was to long for one picture.

Duerr Corporation uses an activity-based costing system with three activity cost pools: Fabricating. Order Processing, and other. The total costs to be assigned to the three cost pools are presented in Table 1 Table 1: Total costs to be assigned to cost pools Wages and salaries $400,000 Depreciation $180,000 Renton equipment $200,000 Total $780,000 The distribution of resource consumption across the three activity pools is presented in Table 2. Table 2: Distribution of Resource Consumption Fabricating Order Processing Other Wages and Salaries 55% 20% 25% Depreciation 10% 50% 40% Renton equipment 35% 40% 25% How much cost in total will be allocated to the Order Dereccina ..

Answer 1

Cost to be allocated to Order Processing:

Wages and Salaries=20%*$400,000=$80,000

Depreciation =50%*$180,000=$90,000

Rent on Equipment =40%*$200,000=$80,000

Total Cost to be allocated to the Order Processing Activity =$80,000+$90,000+$80,000=$250,000

ANSWER:

$250,000