How much cost, in total, be allocated in the first-stage


Question: Diamond 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: Costs: Manufacturing overhead $340,000 Selling and administrative expenses 250,000 Total $590,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 25% 50% 25% 100% Selling and administrative expenses 60% 30% 10% 100% 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 Customer Support activity cost pool? Select one: a. $255,000 b. $390,000 c. $120,000 d. $245,000

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Accounting Basics: How much cost, in total, be allocated in the first-stage
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