Reference no: EM132540025
Poskey 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 ............ $400,000
Depreciation ...................... 160,000
Utilities .............................. 100,000
Total ................................... $660,000
Distribution of resource consumption:
Activity Cost Pools
Assembly Setting Up Other Total
Wages and salaries .............. 40% 40% 20% 100%
Depreciation ........................ 20% 35% 45% 100%
Utilities ................................ 25% 55% 20% 100%
Question 1: How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
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