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

Question

Ginger 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... Depreciation... Utilities... $360,000 140,000 160,000 $660,000 Total ... Distribution of resource consumption: Activity Cost Pools Other 10% 45% 25% Total 100% 100% 100% Assembly Setting Up Wages and salaries. Depreciation Utilities... 10% 5% 15% 80% 60% How much cost, in total, would be allocated to the Setting Up activity cost pool? $528,000 $454,000 $418,000 $396,000

Explanation / Answer

Answer

454000

Setting up Wages and salaries 288000 Depreciation 70000 Utilities 96000 Total 454000

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