How much factory supervision and indirect factory labor cost

Assignment Help Database Management System

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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