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Question(s) / Instruction(s):

Aberdeen Corp. uses activity-based costing system with three activity cost pools. The following information is provided:

Costs:    Wages and salaries                          $ 220,000

                Depreciation                                         120,000

Utilities                                                                    100,000

Total                                                                       $440,000

 

                                                                                                Activity Cost Pools

                                                                Assembly            Setting Up           Other                    Total

Wages and salaries                          60%                        30%                        10%                        100%

Depreciation                                      35%                        45%                        20%                        100%

Utilities                                                 30%                        40%                        30%                        100%

               

How much total cost would be allocated to the Assembly activity cost pool?

A. $204,000

B. $174,000

C. $440,000

D. $162,000

 

 

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