Naples Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages$820,000 Factory equipment depreciation$410,000 Distribution of resource consumption across activity cost pools: Customer Orders Product Processing Other TotalIndirect 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$820,000Factory equipment depreciation$410,000Distribution of resource consumption across activity cost pools:CustomerProductOtherTotalOrders ProcessingIndirect factor wages50%40%10%100%Factory equipment depreciation10%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 factorywages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool? 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 factorywages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?Multiple Choice$451,000$123,000$492,000$1,230,000$410,000

>Under Activity based costing system, total overhead cost is classified into certain activity cost pools.>These activity cost pools are assigned special cost drivers which are best suited for cost allocation.>Based on these, the activity rate for each cost pool is calculated and used to apply the overheads.>Here,--Requirement asks for amount of overhead assigned to ‘Customer Orders’ cost pool.--Customer order has to be assigned 50% of indirect factory wages, and 10% of Factory equipment depreciation.--Hence, total cost allocated to Customer order= ($820000 x 50%) + ($410000 x 10%)= 410000 + 41000= $ 451,000 >Hence, Correct Answer = Option #1: $ 451,000

Answered: Naples Corporation has provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Naples Corporation has provided the following data from its activity-based costing accounting system:


Indirect factory wages	$	820,000
Factory equipment depreciation	$	410,000

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
$820,000
Factory equipment depreciation
$410,000
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?

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