Grammer 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 |
$240,000 |
|
Depreciation |
160,000 |
|
Occupancy |
140,000 |
|
Total |
$540,000 |
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 |
30% |
45% |
25% |
100% |
|
Depreciation |
20% |
35% |
45% |
100% |
|
Occupancy |
5% |
65% |
30% |
100% |
How much cost, in total, would be allocated in the first stage allocation to the Other activity cost pool?
A) $135,000
B) $174,000
C) $162,000
D) $180,000