The "Other" Activity Cost Pool Consists of the Costs of Idle

question 81

Multiple Choice

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 the costs to the activity cost pools.
-How much cost,in total should not be allocated to orders and customer support in the second stage of the allocation process if the activity-based costing system is used for internal decision making?

• A) $0.
• B) $60,000.
• C) $80,000.
• D) $120,000.

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Definitions:

SCOT

An acronym for Social Construction of Technology, a theory that examines how social, political, and economic factors shape technological innovation and development.

Derived Demand

Demand for a good or service that arises from the demand for another good or service, for example, the demand for steel resulting from the demand for cars.

Industrial Products

Goods used in the production of other goods or services, maintenance of establishments, or for resale to other businesses, not typically purchased by consumers for personal use.

Consumer Services

Services designed to meet the needs and expectations of consumers, encompassing a wide range of industries including retail, healthcare, and financial services.