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

Question

Eccles 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 $ 296,000 Depreciation 236,000 Utilities 176,000 Total $ 708,000 Distribution of resource consumption: Activity Cost Pools Assembly Order Processing Other Total Wages and salaries 50% 20% 30% 100% Depreciation 20% 35% 45% 100% Utilities 10% 70% 20% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Explanation / Answer

Calculate how much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool :

Assembly Wages and salaries (296000*50%) 148000 Depreciation (236000*20%) 47200 Utilities (176000*10%) 17600 Total allocation on assembly cost pool 212800

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