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Problem - 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
$312,000
Deprecation
256,000
Utilities
160,000
Total
$728,000
Distribution of resources consumption:
Assembly
Activity Cost Pools Setting Up
Other
40%
35%
25%
100%
Depreciation
20%
30%
50%
60%
15%
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
$291,200
$182,000
$216,000
$203,333
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