(Show Work!!)Dillner Company uses an activity-based costing system with three ac
ID: 2362807 • Letter: #
Question
(Show Work!!)Dillner Company 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:
1. 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. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?>
How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?
A.$78,000
B.$93,000
C.$104,000
D.$91,000
Costs:
Manuf Overhead 300,000
Selling and Admin expense 220,000
Total 520,000
Activity Cost Pools
Order size Customer Support Other Total
Manufacturing Overhead 20% 70% 10% 100%
Selling and Admin expenses 15% 65% 20% 100%
Explanation / Answer
Order Size activity cost pool = 20%*300000 + 15%*220000 =93000 B.$93,000
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