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Use the following to answer questions 46-47:
The following data have been provided by Letze Corporation from its activity-based costing accounting system:
Factory supervision...........
$460,000
Indirect factory labor........
$220,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools
Batch Set-Up
Expediting
Other
Total
Factory supervision............
55%
35%
10%
100%
Indirect factory labor.........
60%
20%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
1. How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?
A) $680,000
B) $385,000
C) $391,000
D) $340,000
2. How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system?
A) $220,000
B) $90,000
C) $0
D) $460,000
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