Lakatos Corporation Uses an Activity-Based Costing System with Three Activity

question 12

Multiple Choice

Lakatos Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: The distribution of resource consumption across the three activity cost pools is given below: How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity cost pool?

• A) $88,000
• B) $132,000
• C) $264,000
• D) $120,000

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Definitions:

Immune Response

The body's defensive reaction to foreign substances or organisms, involving recognition and destruction.

Tumor-suppressor Genes

Genes that protect a cell from one step on the path to cancer; when these genes are mutated or inactivated, the risk of cancer development increases.

Defective Alleles

Variants of genes that do not function correctly, often leading to disorders or reduced fitness in organisms.