Question

Ort Corporation has provided the following data from its activity-based costing accounting system:

Indirect factory wages Factory equipment depreciation ....... $360,000 $100,000

  Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools Indirect factory wages. Factory equipment depreciation........... Customer Orders 60% Product Processing

  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 be assigned to the Customer Orders activity cost pool?

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Answer #1
Customer orders
Indirect factory wages (360,000*60%) 216,000
Factory equipment depreciation (100,000*20%) 20,000
Total Cost assigned 236,000

$236,000

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