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

question 76

Multiple Choice

Kach 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 Other activity cost pool?

• A)$249,000
• B)$185,000
• C)$259,000
• D)$231,000

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Definitions:

Stock Boys

Individuals typically employed in retail establishments to stock merchandise and organize inventory.

Monthly Payroll

The total amount of wages paid by a business to its employees in one month.

Accounting Firm

A business that provides services related to the processing, measurement, and communication of financial information about economic entities.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.