Grandolfo corporation uses an activity-based costing system


Grandolfo 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.....$300,000

Depreciation..... 200,000

Utilities..... 140,000

Total..... $640,000

Distribution of resource consumption:

Activity Cost Pools

Assembly Setting Up Other Total

Wages and salaries..... 45% 35% 20% 100%

Depreciation...... 20% 40% 40% 100%

Utilities...... 15% 55% 30% 100%

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

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Financial Accounting: Grandolfo corporation uses an activity-based costing system
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