Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 610,000 Factory equipment depreciation $ 305,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other Total Indirect labor 40% 50% 10% 100% Factory equipment depreciation 15% 65% 20% 100% The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not allocated to products. How much indirect factory wages and factory equipment depreciation cost would be allocated to the Product Processing activity cost pool? Multiple Choice $411,750 $503,250 $198,250 $305,000 $915,000
Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $ 610,000 Factory equipment depreciation $ 305,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other Total Indirect labor 40% 50% 10% 100% Factory equipment depreciation 15% 65% 20% 100% The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not allocated to products. How much indirect factory wages and factory equipment depreciation cost would be allocated to the Product Processing activity cost pool? Multiple Choice $411,750 $503,250 $198,250 $305,000 $915,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Naples Corporation has provided the following data from its activity-based costing accounting system:
| Indirect factory wages | $ 610,000 |
|---|---|
| Factory equipment |
$ 305,000 |
Distribution of resource consumption across activity cost pools:
| Customer Orders | Product Processing | Other | Total | |
|---|---|---|---|---|
| Indirect labor | 40% | 50% | 10% | 100% |
| Factory equipment depreciation | 15% | 65% | 20% | 100% |
The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not allocated to products. How much indirect factory wages and factory equipment depreciation cost would be allocated to the Product
Multiple Choice
-
$411,750
-
$503,250
-
$198,250
-
$305,000
-
$915,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education