Dideda Company uses an activity-based costing system with three activity cost pools. The company has...
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Accounting
Dideda Company 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: | |
| Manufacturing overhead | $340,000 |
| Selling and administrative expenses | 250,000 |
| Total | $590,000 |
Distribution of Resource Consumption:
| Activity Cost Pools | ||||
| Order Size | Customer Support | Other | Total | |
| Manufacturing overhead | 25% | 50% | 25% | 100% |
| Selling and administrative expenses | 60% | 30% | 10% | 100% |
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.
How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?
Multiple Choice
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$150,000
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$235,000
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$255,000
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$360,000
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