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

question 305

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:

Hair Cells

Sensory cells located in the inner ear that are responsible for converting sound vibrations into electrical signals.

Vestibular Sacs

Structures in the inner ear that help maintain balance by sensing changes in head position, contributing to the vestibular system.

Olfactory Receptors

Specialized nerve cells in the nose involved in detecting and identifying different odors.

Sensorineural Hearing Loss

A type of hearing loss resulting from damage to the inner ear or the nerve pathways from the ear to the brain.