3Poskey 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:
|
Costs |
|
|
Wages and salaries |
$400,000 |
|
Depreciation |
160,000 |
|
Rent . |
100,000 |
|
Total |
$660,000 |
Distribution of resource consumption:
|
|
Activity Cost Pools |
|||
|
|
Assembly |
Setting Up |
Other |
Total |
|
Wages and salaries |
40% |
40% |
20% |
100% |
|
Depreciation |
20% |
35% |
45% |
100% |
|
Utilities |
25% |
55% |
20% |
100% |
How much cost, in total, would be allocated in the first stage allocation to the Assembly activity cost pool?
A) $187,000
B) $264,000
C) $217,000
D) $165,000