Question 1: Question 2: TB MC Qu. 7-86 Tomasini Corporation has provided the Tom

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Question 1:

Question 2:

TB MC Qu. 7-86 Tomasini Corporation has provided the Tomasini Corporation has provided the following data from its activity-based costing accounting system 10 points $700,000 $300,000 Supervisory wages Factory supplies Distribution of Resource Consumption across Activity Cost Pools Batch Unit Activity Cost Pools Supervisory Wages Factory supplies Total 100% 100% Processing Processing Other 65% 35% 15% 29% 20% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system? Multiple Choice $700,000 $0 $300,000 $165,000

Explanation / Answer

Calculate amount would not be assigned to activity based costing :

supervisory wages = 700000*15% =105000

Factory supplies = 300000*20%=60000

Total cost not assigned to product = 165000

So answer is d) 165000

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