Question
omasini Corporation has provided the following data from its activity-based costing accounting system: Supervisory wages $ 600,000 Factory supplies $ 200,000 Distribution of Resource Consumption
omasini Corporation has provided the following data from its activity-based costing accounting system:
Supervisory wages | $ | 600,000 |
Factory supplies | $ | 200,000 |
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools | Batch Processing | Unit Processing | Other | Total | |
Supervisory wages | 25% | 60% | 15% | 100% | |
Factory supplies | 40% | 30% | 30% | 100% | |
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?
Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $52,500; Supervising, $28,600; and Other, $24,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Processing) | Batches (Supervising) | |
Product O6 | 18,500 | 1,400 |
Product D7 | 1,100 | 510 |
Total | 19,600 | 1,910 |
The activity rate for the Processing activity cost pool under activity-based costing is closest to:
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