Bossie Corporation uses an activity-based costing system with three activity cos

Question

Bossie 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 $331,000 Depreciation 275,000 Utilities 227,000 Total $833,000 Distribution of resource consumption: Activity Cost Pools Assembly Setting up Other Total Wages and salaries 50% 25% 25% 100% Depreciation 40% 10% 50% 100% Occupancy 25% 55% 20% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Explanation / Answer

Total Assembly Cost:
Wages and Salaries: 50%

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