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:

Negligence

Failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Damages

Compensation claimed by a person for loss or injury as a result of a breach of contract or tort.

Compensation

Payment or reward given to someone as a recompense for loss, injury, or suffering.

Legal Systems

The frameworks and institutions through which laws are developed, interpreted, and enforced to govern social behavior and resolve disputes.