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:

Stock Decreases

A decrease in the market price of a company's shares.

Cumulative Voting

Cumulative voting is a method used in corporate elections, allowing shareholders to allocate their votes in any manner they choose among the candidates, offering minority shareholders a better chance of representation.

Minority Shareholders

Shareholders who own less than 50% of a company's shares and therefore, have less influence over decision making.

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.