Dilloo 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, would be allocated in the first-stage allocation to the Order Size activity cost pool?
A) $271,000
B) $280,500
C) $297,000
D) $264,000

Question

Dilloo 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, would be allocated in the first-stage allocation to the Order Size activity cost pool?
A) $271,000 
B) $280,500 
C) $297,000 
D) $264,000

Quizplus · Accepted Answer

The total cost allocated to the Order Size activity cost pool in the first-stage allocation is $271,000.

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