Dillner 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: 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)$104,000
B)$0
C)$52,000
D)$74,000

Question

Dillner 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:  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)$104,000 
B)$0 
C)$52,000 
D)$74,000

Quizplus · Accepted Answer

Allocations to the Other size activity cost pool:
 11eaa48f_7b91_267c_9e4a_755fab68915d_TB2485_00

Dillner Company Uses an Activity-Based Costing System with Three Activity