Abagail Corp. uses activity-based costing system with three activity cost pools.

Question

Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided:

Costs: Wages and salaries $   212,000

Depreciation                           107,000

Utilities                                   119,000

Total                                     $440,000

Activity Cost Pools

                                  Assembly    Setting Up      Other     

Wages and salaries       0.57           30%           10%     

Depreciation                  0.38           45%              20%     

Utilities                          0.22           40%              30%      

How much total cost would be allocated to the Assembly activity cost pool?

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Total Cost Allocated to Assembly Activity Cost Pool = 212000*.57 + 107000*.38 + 119000*.22 = 187680

Explanation:

Formula is = Relevant Total Cost*Respective Assembly Allocation %.

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.