Assigning manufacturing overhead cost to activity pools is referred to as first-stage allocation because costs are assigned first to the activity pools before being assigned to
A)cost objects.
B)cost drivers.
C)activity drivers.
D)activity objects.

Question

Quizplus · Accepted Answer

First-stage allocation involves assigning manufacturing overhead cost from the general ledger to activity pools based on the activities performed, before assigning the costs from the activity pools to the specific cost objects or products. Therefore, the costs are first assigned to cost objects in the second-stage allocation.

Assigning Manufacturing Overhead Cost to Activity Pools Is Referred to as First-Stage