Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 780,000 Factory equipment depreciation $ 390,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other Total Indirect factor wages 50 % 40 % 10 % 100 % Factory equipment depreciation 10 % 70 % 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 be assigned to the Customer Orders activity cost pool?
Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 780,000 Factory equipment depreciation $ 390,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other Total Indirect factor wages 50 % 40 % 10 % 100 % Factory equipment depreciation 10 % 70 % 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 be assigned to the Customer Orders activity cost pool?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Naples Corporation has provided the following data from its activity-based costing accounting system:
| Indirect factory wages | $ | 780,000 | |
| Factory equipment |
$ | 390,000 | |
Distribution of resource consumption across activity cost pools:
| Customer Orders | Product Processing | Other | Total | |||||||||||
| Indirect factor wages | 50 | % | 40 | % | 10 | % | 100 | % | ||||||
| Factory equipment depreciation | 10 | % | 70 | % | 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 be assigned to the Customer Orders activity cost pool?
Transcribed Image Text:Naples Corporation has provided the following data from its activity-based costing accounting system:
Indirect factory wages
$780,000
$390,000
Factory equipment depreciation
Distribution of resource consumption across activity cost pools:
Customer
Product
Other
Total
Orders
Processing
Indirect factor wages
50%
40%
10%
100%
Factory equipment depreciation
10%
70%
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 be assigned to the Customer Orders activity cost pool?
Transcribed Image Text:Multiple Choice
$390,000
$429,000
$1,170,000
$468,000
$117,000
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