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Diehl Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs...
Diehl Company 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:Manufacturing Overhead$480,000Selling and Administrative Expenses$100,000Total$580,000Distribution of Resource Consumption:Activity Cost PoolsOrderCustomerSizeSupportOtherTotalManufacturing Overhead5%85%10%100%Selling and Administrative Expenses60%20%20%100%The "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.How much cost, in total, should not be allocated to products in the second stage of the allocation process if the activity-based costing system is used for internal decision making? 1. $ 68,000. 2. $116,000. 3. $ 58,000. 4. $ 0.
