Duerr Corporation uses an activity based costing system with three activity cost pools. The company has provided the following data concerning its costs:
|
Wages and salaries |
$400,000 |
|
Depreciation |
180,000 |
|
Occupancy |
200,000 |
|
Total |
$780,000 |
The distribution of resource consumption across the three activity cost pools is given below:
|
|
Activity Cost Pools |
|||
|
|
Fabricating |
Order Processing |
Other |
Total |
|
Wages and salaries |
55% |
20% |
25% |
100% |
|
Depreciation |
10% |
50% |
40% |
100% |
|
Occupancy |
35% |
40% |
25% |
100% |
How much cost, in total, would be allocated in the first stage allocation to the Order Processing activity cost pool?
A) $250,000
B) $286,000
C) $156,000
D) $312,000