Answer: $120,000
Explanation:
The cost, that would be allocated in the first-stage allocation to the Fabricating activity cost pool will be:
Wages and salaries = 10% × $420,000 = $42000
Depreciation = 5% × $240000 = $12000
Occupancy = 30% × $220,000 = $66,000
Therefore, the fabricating cost will be:
= $42000 + $12000 + $66000
= $120,000