Costs: Wages and salaries ............................ .$440,000 Depreciation ..
ID: 2384284 • Letter: C
Question
Costs:
Wages and salaries ............................ .$440,000
Depreciation ......................................220,000
Utilities .............................. 200,000
Total ................................................$860,000
Distribution of resource consumption:
Activitv Cost Pools
Assembly Setting Other
Up Total
wages And salireies 50 30% 20% 100%
Utilities 25 35% 40 100%
How much cost, in total, would be allocated in the firststage allocation to the Assembly activity cost pool?
Explanation / Answer
Total Assembly Cost: Wages and Salaries: 50% × $440,000 $220,000 Depreciation: 20% ×$220,000 $44,000 Utilities: 25% × $200,000 $50,000 Total $314,000