Question 9: Question 10: 9 TB MC Qu. 7-52 Eccles Corporation uses an activity-ba

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Question 9:

Question 10:

9 TB MC Qu. 7-52 Eccles Corporation uses an activity-based costing Eccles 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: 10 points Costs Wages and salaries Depreciation Utilities $269,000 214,000 192,000 $675,000 References Total Distribution of resource consumption: Wages and salaries Depreciation Utilities Assembly 45% 30% 20% Activity Cost Pools Setting Up 25% 20% 50% Other 30% 50% 30% Total 100% 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? Multiple Choice $210,983 $135,000 $303,750 $223,650

Explanation / Answer

1 Wages and salaries 121050 =269000*45% Depreciation 64200 =214000*30% Utilities 38400 =192000*20% Total 223650 Option 4 is correct 2 Revenue 533.12 Less: Expenses Decorations 54.9 Size-related 150.48 =132*1.14 Complexity related 142.4 =28.48*5 Order related 74.98 Total expenses 422.76 Overall margin 110.36 Option 3 is correct

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