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

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