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

question 20

Multiple Choice

Diehl 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: Distribution of resource consumption: 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?

• A) $348,000
• B) $188,500
• C) $29,000
• D) $84,000

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Definitions:

Request for Proposal (RFP)

A document issued by a company or organization asking for detailed proposals from vendors for the provision of goods or services.

Traveling Requisitions

Requests for goods or services that are initiated or approved while the requester is away from their primary office location.

Business Trips

Travel undertaken for work or business purposes, often involving meetings or inspections at locations away from the usual workplace.

Recurring Requirements

Ongoing or periodic needs that must be met regularly, such as monthly material orders or annual subscriptions.