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

Question

Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has proided the following date concerning its costs and its activity based costing system: Wages and salaries S 306,000 256,000 Utilities Total $ 752,000 Distribution of resource consumption: Activity Cost Pools Setting Up 30% 10% 65% Other 30% 55% 20% 100% 100% 100% Wages and salaries 35% Utilities 15% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? O $300,800 O$240,500 O $227.833 O $112,800

Explanation / Answer

The correct answer is $ 240,500

Note :

Total Cost Allocated :

1. Overhead Cost 2. Assembly Cost Allocated (1.*2.) Wages and salaries 306,000 40% 122,400 Depreciation 256,000 35% 89,600 Utilities 190,000 15% 28,500 Total Cost 240,500

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