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

Question

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

Distribution of Resource Consumption across Activity Cost Pools:

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

How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

$479,450

$336,450

$911,000

$303,950

Explanation / Answer

indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool= [Factory wages *% of allocation ] +[equipment depreciation *% of allocation]

    =[617000*.45]+[294000*.20]

= 277650+ 58800

= 336450

correct option is "B"

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