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

question 69

Multiple Choice

Dideda Corporation 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, would be allocated in the first-stage allocation to the Order Size activity cost pool?

• A)$150, 000
• B)$360, 000
• C)$255, 000
• D)$234, 000

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Definitions:

Quantity

The amount or number of a product or service that is available for sale, use, or consumption.

Efficient Joint Production

Efficient joint production occurs when a firm or economy can produce multiple products at the lowest possible cost, maximizing the use of inputs to achieve optimal output levels.

Downward-Sloping Demand

The economic concept that, all else being equal, as the price of a good decreases, consumer demand for that good will increase.

Public Ownership

The ownership of assets by the government or the entire community rather than by private individuals or corporations.