Gutknecht 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$300,000Depreciation 180,000Utilities 240,000Total$720,000Distribution of resource consumption: Activity Cost Pools?AssemblySetting UpOtherTotalWages and salaries35%40%25%100%Depreciation5%60%35%100%Utilities10%60%30%100%How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?
A. $210,000
B. $216,000
C. $180,000
D. $138,000
Answer: A
Business
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