First-stage allocation to the setting up activity cost pool


Ginger 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:

Costs:
Wages and salaries $360,000
Depreciation 140,000
Utilities 160,000
Total $660,000

Distribution of resource consumption:
Activity Cost Pools
Assembly Setting Up Other Total
Wages and salaries 10% 80% 10% 100%
Depreciation 5% 50% 45% 100%
Utilities 15% 60% 25% 100%

How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?

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Accounting Basics: First-stage allocation to the setting up activity cost pool
Reference No:- TGS080027

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