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TB MC Qu. 7-87 (Static) The following data have been provided... The following data...

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Accounting

TB MC Qu. 7-87 (Static) The following data have been provided...

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.

How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

Multiple Choice
  • $680,000
  • $385,000
  • $391,000
  • $340,000

Answer & Explanation Solved by verified expert
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