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

Question

Borden Corporation uses an activity-based costing system with three activity cost pools. The the following data concerning its costs and its activity based costing system: company has provided Overhead Costs: Indirect labor Depreciation Utilities Total $ 260,000 220,000 140,000 S 620,000 Activity Cost Pools Assembly Setting up Other T Total Indirect labor Depreciation Utilities 50% 20 % 25 % 25 % 30 % 45 % 25 % 50% 30 % 100 % 100 % 100 % How much overhead cost, in total, would be allocated to each activity cost pool?

Explanation / Answer

Assembly Setting up Other Total Indirect Labor     130,000.00        65,000.00        65,000.00     260,000.00 Depreciation        44,000.00        66,000.00     110,000.00     220,000.00 Utilities        35,000.00        63,000.00        42,000.00     140,000.00 Total     209,000.00     194,000.00     217,000.00     620,000.00

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