How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity… 1 answer below »
3Poskey 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
$400,000
Depreciation
160,000
Rent .
100,000
Total
$660,000
Distribution of resource consumption:
Activity Cost Pools
Assembly
Setting Up
Other
Total
Wages and salaries
40%
40%
20%
100%
Depreciation
20%
35%
45%
100%
Utilities
25%
55%
20%
100%
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
A) $187,000
B) $264,000
C) $217,000
D) $165,000