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, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?
A) $68,000
B) $0
C) $116,000
D) $58,000

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, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?
A) $68,000 
B) $0 
C) $116,000 
D) $58,000

Quizplus · Accepted Answer

Allocations to the Other activity cost pool:
 11eacbfc_c674_c5de_8ffe_2be88d285792_TB7552_00

Diehl Corporation Uses an Activity-Based Costing System with Three Activity