Question
TB MC Qu. 7-87 (Static) The following data have been provided... The following data have been provided by Letze Corporation from its activity-based costing accounting
TB MC Qu. 7-87 (Static) The following data have been provided...
The following data have been provided by Letze Corporation from its activity-based costing accounting system:
| Factory supervision | $ 460,000 |
|---|---|
| Indirect factory labor | $ 220,000 |
Distribution of Resource Consumption across Activity Cost Pools:
| Activity Cost Pools | Batch Set-Up | Expediting | Other | Total |
|---|---|---|---|---|
| Factory supervision | 55% | 35% | 10% | 100% |
| Indirect factory labor | 60% | 20% | 20% | 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 factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?
- $680,000
- $385,000
- $391,000
- $340,000
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Financial Accounting
Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington
9th Edition
0070434360, 978-0070434363
