Question
The following data have been provided by Hooey Corporation from its activity-based costing accounting system: Supervisory wages $ 56,000 Factory utilities $ 209,000 Distribution of
The following data have been provided by Hooey Corporation from its activity-based costing accounting system:
| Supervisory wages | $ | 56,000 |
| Factory utilities | $ | 209,000 |
Distribution of Resource Consumption across Activity Cost Pools:
| Activity Cost Pools | Product Changeovers | Machining | Other | Total | ||||
| Supervisory wages | 55 | % | 32 | % | 13 | % | 100 | % |
| Factory utilities | 13 | % | 68 | % | 19 | % | 100 | % |
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
Required:
a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool.
b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.
Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool.
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Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.
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Accounting Principles
Authors: Jerry J. Weygandt, Valerie A. Kinnear, Donald E. Kieso, Paul D. Kimmel, Barbara A. Trenholm, Joan E. Barlow
6th Canadian Edition
1118557301, 978-1118557303
