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Cost Accounting - Contributor: Mendoza, J. Date...

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Contributor: Mendoza, J.Date Contributed: March 2011Dimaio Company uses an activity-based costing system with three activity cost pools. The company has providedthe following data concerning its costs and its activity based costing system:Distribution ofconsumption:Costs:Order SizeCustomer SupportOthersManufacturing overhead (OH)$580,00050%40%10%Selling & administrative expenses (S & A)240,0005%75%20%Total$820,000The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs.You have been asked to complete the first-stage allocation of costs to the activity cost pools.1.)How much cost, in total, would be allocated in the firststage allocation to the Order Size activity cost pool?[A]$302,000 [B] $41,000 [C] $225,500 [D] $410,000
2.)Alamo's customer service department follows up on customer complaints by telephone inquiry.During a recentperiod, the department initiated 7,000 calls and incurred costs of $203,000.If 2,940 of these calls were for thecompany's wholesale operation (the remainder were for the retail division), costs allocated to the retail division

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Term
Summer
Professor
SirJoe
Tags
Cost Accounting, Dimaio Company

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