Abagail Corp. uses activity-based costing system with three activity cost pools.
The following information is provided:
Costs:Wages and salaries $ 201,000
Depreciation 112,000
Utilities 119,000
Total $440,000
Activity Cost Pools
Assembly Setting Up Other
Wages and salaries 0.53 30% 10%
Depreciation 0.30 45% 20%
Utilities 0.28 40% 30%
How much total cost would be allocated to the Assembly activity cost pool?
Total cost woule be allocated Assembly activity cost pool
= ({WA}*{WS})+({DA}*{D})+({UA}*{U})
= 0.53 x $201,000 + 0.30 x $112,000 + 0.28 x $ 119,000
= $173,450
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