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 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 be assigned to the Batch Processing activity cost pool?

Answer 1

Calculate supervisory wages and factory supplies cost would be assigned to the Batch Processing activity cost pool :

	Batch processing activity
Supervisory wages	660000*20% = 132000
Factory supplies	280000*45% = 126000
Total	258000

so $258000 is assigned to batch processing activity cost pool.