Question
Tomasini Corporation has provided the following data from its activity-based costing accounting system: Supervisory wages $ 660,000 Factory supplies $ 280,000 Distribution of Resource Consumption
Tomasini Corporation has provided the following data from its activity-based costing accounting system:
| Supervisory wages | $ 660,000 |
|---|---|
| Factory supplies | $ 280,000 |
Distribution of Resource Consumption across Activity Cost Pools:
| Activity Cost Pools | Batch Processing | Unit Processing | Other | Total |
|---|---|---|---|---|
| Supervisory wages | 20% | 70% | 10% | 100% |
| Factory supplies | 45% | 35% | 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 supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?
Multiple Choice
-
$660,000
-
$0
-
$122,000
-
$280,000
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
13th Canadian edition
133405508, 978-0133405507
