Diehl 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:Manufacturing overhead$480,000Selling and administrative expenses 100,000Total 580,000Distribution of resource consumption:Activity Cost Pools?Order SizeCustomer SupportOtherTotalManufacturing overhead5%85%10%100%Selling and administrative expenses60%20%20%100%The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.You have been asked to complete the first-stage allocation of costs to the activity cost pools.How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the
activity-based costing system is used for internal decision-making?
A. $68,000
B. $58,000
C. $0
D. $116,000
Answer: A
You might also like to view...
Which of the following is true of the U.S. Census Bureau data?
A) It can be used to identify heavy users of specific products. B) It includes information about the use of over 8,000 brands. C) The full data collection process occurs only every 10 years. D) The data is only available to paying subscribers. E) It can be used to search for information from major media outlets.
How would an HR director seek to make a return-on-investment calculation for an ethics training workshop?
What will be an ideal response?
What are market development funds?
What will be an ideal response?
The employees at Wegners Market are in the process of a union organizing campaign. At this point, the NLRB has certified the union as the legal bargaining representative of the employees. Where are they in Moser's progression of steps leading to unionization?
A. Initial organizational meeting B. Contract negotiations C. Election petition and voting preparation D. Formation of in-house organizing committee