Question
Ort Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 583,000 Factory equipment depreciation 315,000 Distribution of Resource
Ort Corporation has provided the following data from its activity-based costing accounting system:
Indirect factory wages $ 583,000 Factory equipment depreciation 315,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools Customer Orders Product Processing Other Total Indirect factory wages 65% 25% 10% 100% Factory equipment depreciation 45% 50% 5% 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 indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?
$0
$583,000
$74,050
$315,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started