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Ort Corporation has provided the following data from its activity-based costing accounting system:
Indirect factory wages $360,000
Factory equipment depreciation $100,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools Customer Orders Product Processing Other Total
Indirect factory wages 60% 30% 10% 100%
Factory equipment depreciation 20% 60% 20% 100%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
Problem 1: How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?
a $0.
b. $56,000
c. $100,000
d. $360,000
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