How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity…
Ginger 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
$360,000
Depreciation
140,000
Utilities
160,000
Total
$660,000
Distribution of resource consumption:
Activity Cost Pools
Assembly
Setting Up
Other
Total
Wages and salaries
10%
80%
10%
100%
Depreciation
5%
50%
45%
100%
Utilities
15%
60%
25%
100%
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
A) $528,000
B) $454,000
C) $418,000
D) $396,000