Business, 09.06.2020 22:57 xaguilar

Dideda 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: Manufacturing overhead $360,000
Selling and administrative expenses 240,000
Total $600,000

Distribution of resource consumption:
Activity cost pools
Order Size Customer support Other Total
Manufacturing overhead 25% 65% 10% 100%
Selling and administrative expenses 60% 20% 20% 100%

Required:
How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Answers: 1

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Dideda Corporation uses an activity-based costing system with three activity cost pools. The company...

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