How much factory supervision and indirect factory labor cost

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Reference no: EM13646218

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%

20%

100%

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

Reference no: EM13646218

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