Diehl Corporation 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: Distribution of resource consumption: 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?
A) $348,000
B) $188,500
C) $29,000
D) $84,000

Question

Diehl Corporation 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:  Distribution of resource consumption:  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?
A) $348,000 
B) $188,500 
C) $29,000 
D) $84,000

Quizplus · Accepted Answer

Allocations to the Order size activity cost pool:
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Diehl Corporation Uses an Activity-Based Costing System with Three Activity