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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Futter Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:
|
Costs |
 |
|
Wages and salaries |
$440,000 |
|
Depreciation |
180,000 |
|
Utilities |
220,000 |
|
Total |
$840,000 |
The distribution of resource consumption across the three activity cost pools is given below:
|
 |
Activity Cost Pools |
|||
|
 |
Fabricating |
Order Processing |
Other |
Total |
|
Wages and salaries |
55% |
35% |
10% |
100% |
|
Depreciation |
20% |
35% |
45% |
100% |
|
Utilities |
10% |
50% |
40% |
100% |
How much cost, in total, would be allocated in the first-stage allocation to the xFabricating activity cost pool?
A) $84,000
B) $300,000
C) $238,000
D) $462,000
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