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

Question

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 systenm Costs: Wages and salaries Depreciation Utilities $340,000 180,000 200,000 $720,000 Total Distribution of resource consumption Wages and salaries Depreciation Utilities Assembly 20% 15% 5% Activity Cost Pools Setting Up 60% 35% 55% Other 20% 50 40% Total 100% 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Explanation / Answer

Calculate first allocation to assembly cost pool :

so answer is d) $105000

Assembly cost pool Wages and salaries (340000*20%) 68000 Depreciation (180000*15%) 27000 Utilities (200000*5%) 10000 Total 105000

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