Manufacturing overhead 580,000
Selling and administrative expenses 240,000
Distribution of resource consumption:
Activity Cost Pools
Size Support Other Total
Manufacturing overhead 50% 40% 10% 100%
Selling and administrative expenses 5% 75% 20% 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 Order Size activity cost pool?
This provides the steps to compute the first-stage allocation to the Order Size activity cost pool