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

question 107

Multiple Choice

Higbie 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)$76,000
• B)$204,000
• C)$152,000
• D)$266,000

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Definitions:

Confederal

A form of government where various states or entities join together for common purposes but maintain substantial independence and sovereignty.

Federal

Pertaining to a system of government where power is divided between a central authority and constituent political units, such as states or provinces.

Unitary

A system of government where all the powers rest in a single, central authority.

Confederal

A confederal system, also denoted, is a political structure where independent states join together for certain purposes but maintain their sovereignty, often seen in the handling of common defense or foreign policy.