Oregon Manufacturing has provided the following data from its activity-based costing accounting system: Indirect factory wages $620,000 Factory equipment depreciation 350,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Customer Orders Indirect factory wages 50% Factory equipment 40% depreciation Product Processing 25% 45% Other Total 25% 100% 15% 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 not be assigned to products using the activity-based costing system?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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Oregon Manufacturing has provided the following data from its activity-based
costing accounting system:
Indirect factory wages
$620,000
Factory equipment depreciation 350,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools
Customer
Orders
Indirect factory wages
50%
Factory
equipment 40%
depreciation
Product
Processing
25%
45%
Other Total
25% 100%
15% 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
not be assigned to products using the activity-based costing system?
Transcribed Image Text:Oregon Manufacturing has provided the following data from its activity-based costing accounting system: Indirect factory wages $620,000 Factory equipment depreciation 350,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Customer Orders Indirect factory wages 50% Factory equipment 40% depreciation Product Processing 25% 45% Other Total 25% 100% 15% 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 not be assigned to products using the activity-based costing system?
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