How much cost allocated in the first-stage allocation

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Reference no: EM132659734

Eccles 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 $327,000

Depreciation 315,000

Utilities 167,000

Total $809,000

Distribution of resource consumption:

                           Activity Cost Pools

                             Assembly           Setting Up             Other                      Total

Wages and salaries 40%               35%                     25%                     100%

Depreciation 25%                         10%                    65%                  100%

Utilities 15%                                 50%                     35%                  100%

Problem 1: How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Multiple Choice

Option 1: $121,350

Option 2: $323,600

Option 3: $234,600

Option 4: $221,933

Reference no: EM132659734

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