Davis Company Uses an Activity-Based Costing System in Which There

Multiple Choice

Davis Company uses an activity-based costing system in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:


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 the costs to the activity cost pools.
-How much cost,in total should not be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision making?

A) $0.
B) $60,000.
C) $80,000.
D) $120,000.