Business, 06.06.2020 21:01 leethiel1

Dideda 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:
Manufacturing overhead $360,000
Selling and administrative expenses 240,000
Total $600,000

Distribution of resource consumption:
Activity cost pools

Order Size Customer support Other Total
Manufacturing overhead 25% 65% 10% 100%
Selling and administrative expenses 60% 20% 20% 100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Answers: 2

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Dideda Corporation uses an activity-based costing system with three activity cost pools. The company...