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Gutknecht 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: Distribution of resource consumption: How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool? Select one: a. $138,000 b. $210,000 c. $180,000 d. $216,000

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Answer:

$210,000

Explanation:

Calculation of how much cost, in total that would be allocated in the first-stage allocation to the Other activity cost pool will be;

The Total Other Cost will be;

Wages and salaries $75,000

(25% × $300,000)

Depreciation $63,000

(35% × $180,000)

Utilities 72,000

(30% × $240,000)

Total cost =Wages and salaries $75,000+Depreciation $63,000 +Utilities 72,000 =$210,000

Therefore how much cost, in total that would be allocated in the first-stage allocation to the Other activity cost pool will be $210,000

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