27) Glendale Corporation uses an activity-based costing system with three activi

Question

27) Glendale Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data:

Costs:
Depreciation $225,000
Utilities 150,000
Wages and Salaries 314,000
---------
Total $689,000
=========

Resources are consumed as follows:

Activity Cost Pools
-----------------------------------------------------
Assembly Setting Up Other Total
Depreciation 30% 20% 50% 100%
Utilities 20% 40% 40% 100%
Wages and salaries 40% 45% 15% 100%

How much total cost would be allocated to the Assembly cost pool?
A) $223,100
B) $246,300
C) $347,900
D) $215,700

Explanation / Answer

225,000*.30 + 150,000*.20 +314,000*.40= 223,100 A)

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