Q1) Vanfleet Corp. utilizes the activity based costing system with three activity coasts pools. Company given the data concerning costs given below:
| Wages and salaries |
$420,000 |
| Depreciation |
100,000 |
| Occupancy |
200,000 |
| Total |
720,000 |
Distribuion of resource consumption across three activity pools is listed below:
| Activity costs pools |
| |
Fabricating |
processing |
other |
| Wages and salaries |
30% |
45% |
25% |
| Depreciation |
5% |
45% |
50% |
| Occupancy |
15% |
55% |
30% |
How much cost, in total, would be assigned in first stage allocation in fabricating activity cost pool?
a) 120,000
b) 216,000
c) 161,000
d) 108,000