Ginger 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 |
$360,000 |
|
Depreciation |
140,000 |
|
Utilities |
160,000 |
|
Total |
$660,000 |
Distribution of resource consumption:
|
|
Activity Cost Pools |
|||
|
|
Assembly |
Setting Up |
Other |
Total |
|
Wages and salaries |
10% |
80% |
10% |
100% |
|
Depreciation |
5% |
50% |
45% |
100% |
|
Utilities |
15% |
60% |
25% |
100% |
How much cost, in total, would be allocated in the first stage allocation to the Setting Up activity cost pool?
A) $528,000
B) $454,000
C) $418,000
D) $396,000