Futter Corporation uses an activity based costing system with three activity cost pools. The company has provided the following data concerning its costs:
|
Costs |
|
|
Wages and salaries |
$440,000 |
|
Depreciation |
180,000 |
|
Utilities |
220,000 |
|
Total |
$840,000 |
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% |
35% |
10% |
100% |
|
Depreciation |
20% |
35% |
45% |
100% |
|
Utilities |
10% |
50% |
40% |
100% |
How much cost, in total, would be allocated in the first stage allocation to the xFabricating activity cost pool?
A) $84,000
B) $300,000
C) $238,000
D) $462,000