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

question 11

Multiple Choice

Diehl 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:


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 products in the second stage of the allocation process if the activity-based costing system is used for internal decision making?

• A) $0.
• B) $58,000.
• C) $68,000.
• D) $116,000.

---

Definitions:

TAC (Tetracaine-Adrenaline-Cocaine)

A topical solution combining tetracaine, adrenaline, and cocaine, often used in medical settings for its anesthetic and vasoconstrictive properties.

EMLA (Eutectic Mixture of Local Anesthetics)

A topical preparation used to numb the skin before procedures like needle insertion.

Transdermal Fentanyl (Duragesic)

A potent opioid analgesic patch used for managing severe pain, delivering fentanyl through the skin over time.

Oxycodone (OxyContin)

A potent opioid pain medication used to manage moderate to severe pain, known for its potential for addiction.