I need to know HOW TO SOLVE this problem. Thanks Kassabian Corporation uses an a
ID: 2386788 • Letter: I
Question
I need to know HOW TO SOLVE this problem. ThanksKassabian 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 $440,000
Depreciation 220,000
Utilities 200,000
Total $860,000
Distribution of resource consumption:
Activity cost pools
Total other setting up Assembly
100% 20% 30% 50% Wages and salaries
100% 40% 40% 20% Depreciation
100% 40% 35% 25% Utilities
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
Explanation / Answer
Wages and Salaries:
50% × $440,000
$220,000
Depreciation:
20% ×$220,000
$44,000
Utilities:
25% × $200,000
$50,000
Total
Total $314,000
Wages and Salaries:
50% × $440,000
$220,000
Depreciation:
20% ×$220,000
$44,000
Utilities:
25% × $200,000
$50,000
Total
Total $314,000