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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$285,000 Depreciation 243,000 Utilities 170,000 Total$698,000 Distribution of resource consumption: Activity Cost Pools AssemblySetting UpOtherTotal Wages and salaries5550% Depreciation10 p0% Utilities15U00% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool

Respuesta :

Answer:

$206,550

Explanation:

The computation of the allocation done to the Assembly activity cost pool is shown below:

= Wages & salaries × given percentage + Depreciation × given percentage  + Utilities × given percentage

= $285,000 × 55% + $243,000 × 10% + $170,000 × 15%

= $156,750 + $24,300 + $25,500

= $206,550

We simply applied the above formula so that the allocation amount could arrive.

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