Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Lakatos Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Costs: Wages and salaries $ 420,000 Depreciation 240,000 Occupancy 220,000 Total $ 880,000 The distribution of resource consumption across the three activity cost pools is given below: Activity Cost Pools Total Fabricating Order Processing Other Wages and salaries 10% 75% 15% 100% Depreciation 5% 50% 45% 100% Utilities 30% 35% 35% 100% How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity cost pool

Sagot :

Answer: $120,000

Explanation:

The cost, that would be allocated in the first-stage allocation to the Fabricating activity cost pool will be:

Wages and salaries = 10% × $420,000 = $42000

Depreciation = 5% × $240000 = $12000

Occupancy = 30% × $220,000 = $66,000

Therefore, the fabricating cost will be:

= $42000 + $12000 + $66000

= $120,000

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.