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Dierich Company uses an activity-based costing system with three activity cost pools. The company has...

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Accounting

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 $600,000
Selling and administrative expenses 220,000
Total $820,000
Distribution of Resource Consumption:
Activity Cost Pools
Order Size Customer Support Other Total
Manufacturing overhead 15%75%10%100%
Selling and administrative expenses 60%20%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, should not be allocated to orders and customer support in the second stage of the allocation process if the activity-based costing system is used for internal decision making?
Multiple Choice
$0
$82,000
$104,000
$164,000

Answer & Explanation Solved by verified expert
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