Discussion:
Futter Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:
|
Costs
|
|
|
Wages and salaries
|
$440,000
|
|
Depreciation
|
180,000
|
|
Utilities
|
220,000
|
|
Total
|
$840,000
|
The distribution of resource consumption across the three activity cost pools is given below:
|
|
Activity Cost Pools
|
|
|
Fabricating
|
Order Processing
|
Other
|
Total
|
|
Wages and salaries
|
55%
|
35%
|
10%
|
100%
|
|
Depreciation
|
20%
|
35%
|
45%
|
100%
|
|
Utilities
|
10%
|
50%
|
40%
|
100%
|
How much cost, in total, would be allocated in the first-stage allocation to the xFabricating activity cost pool?