Question
Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 610,000 Factory equipment depreciation $ 305,000 Distribution of
Naples Corporation has provided the following data from its activity-based costing accounting system:
| Indirect factory wages | $ 610,000 |
|---|---|
| Factory equipment depreciation | $ 305,000 |
Distribution of resource consumption across activity cost pools:
| Customer Orders | Product Processing | Other | Total | |
|---|---|---|---|---|
| Indirect labor | 40% | 50% | 10% | 100% |
| Factory equipment depreciation | 15% | 65% | 20% | 100% |
The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not allocated to products. How much indirect factory wages and factory equipment depreciation cost would be allocated to the Product Processing activity cost pool?
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
