Question

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

Indirect factory wages	$	26,000
Factory equipment depreciation	$	203,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools	Customer Orders		Product Processing		Other		Total
Indirect factory wages	48	%	47	%	5	%	100	%
Factory equipment depreciation	62	%	24	%	14	%	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 indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool.

b. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products.

Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool.

	Product Processing Activity Cost Pool Indirect factory wages Factory equipment depreciation

Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products.

	Unassigned Costs Indirect factory wages Factory equipment depreciation

Answer 1

a)
		product processing activity cost pool
indirect factory wages		26000*47%		12220
factory equipment depreciation		203000*24%		48720
b)
other cost will not assigned to product
		unassigned cost
indirect factory wages		26000	5%	1300
factory equipment depreciation		203000	14%	28420

please give a thumbs up if it is helpful & let me know if any doubt