Dierich Company uses an activity-based costing system with three activity cost pools. The company has...
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Dierich 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 Selling and administrative expenses Total $600,000 220,000 $820,000 Distribution of Resource Consumption. Activity Cost Pools Customer Support 75% 20% Order Size 15% 60% Manufacturing overhead Selling and administrative expenses Other 10% 20% Total 100% 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? O A $307,500 O B. $492,000 O C.$123,000 OD. $222,000
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