Weldon Corporation has provided the following data from its activity-based costing accounting system Indirect factory wages $ 340,000 Factory equipment depreciation $ 240,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Customer Orders Product Processing Other Total Indirect factory wages 25% 65% 10% 100% Factory equipment depreciation 40% 40% 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 indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?
Added by Santiago W.
Close
Step 1
The "Other" pool is not assigned to products. Show more…
Show all steps
Your feedback will help us improve your experience
William Voeller and 73 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
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 Supervisory wages Factory supplies Batch Processing 20% 45% Unit Processing 70% 35% Other 10% 20% Total 100% 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 be assigned to the Batch Processing activity cost pool?
Manasvee S.
Addleman Corporation has an activity-based costing system with three activity cost pools - Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $73,000 Indirect labor $1,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.20 0.10 0.70 Indirect labor 0.20 0.20 0.60 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 for the company's two products follow: Activity: MHs (Processing) Batches (Supervising) Product W3 7,600 100 Product H3 2,400 900 Total 10,000 1,000 Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. Sales and Direct Cost Data: Product W3 Product H3 Sales (total) $159,500 $154,100 Direct materials (total) $66,300 $55,300 Direct labor (total) $77,800 $84,100
Azat N.
Moorman Corporation has an activity-based costing system with three activity cost pools: Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $569,000 and indirect labor totals $5,500. Data concerning the distribution of resource consumption across activity cost pools appear below: Activity Cost Pools Processing Setting Up Other Total Equipment depreciation $369,850 $56,900 $142,250 Indirect labor $2,750 $1,650 $1,100 Total $372,600 $58,550 $143,350
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD