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Q1) Vanfleet Corp. utilizes the activity based costing system with three activity coasts pools. Company given the data concerning costs given below:

Wages and salaries $420,000
Depreciation 100,000
Occupancy 200,000
Total 720,000

Distribuion of resource consumption across three activity pools is listed below:

Activity costs pools
  Fabricating processing other
Wages and salaries 30% 45% 25%
Depreciation 5% 45% 50%
Occupancy 15% 55% 30%

How much cost, in total, would be assigned in first stage allocation in fabricating activity cost pool?

a) 120,000

b) 216,000

c) 161,000

d) 108,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918977

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