Reference no: EM13646206

Use the following to answer questions:

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

	Indirect factory wages............................	$340,000
	Factory equipment depreciation.............	$240,000

Distribution of Resource Consumption across Activity Cost Pools:

		Activity Cost Pools
		Customer Orders	Product Processing	Other	Total
	Indirect factory wages..................	25%	65%	10%	100%
	Factory equipment depreciation....	40%	40%	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 indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?
A) $188,500
B) $181,000
C) $290,000
D) $580,000

2. How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?
A) $340,000
B) $82,000
C) $0
D) $240,000