Reference no: EM132530032

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

Indirect factory wages $ 583,000

Factory equipment depreciation 315,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools               Customer Orders            Product            Processing               Other Total

Indirect factory wages                 65%                          25%              10%                   100%

Factory equipment depreciation        45%                          50%           5%                       100%

• The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

Question 1: How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?

Option 1: $0

Option 2: $583,000

Option 3: $74,050

Option 4: $315,000