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3. Ort Corporation has provided the following data from its activity-based costi

ID: 2565779 • Letter: 3

Question

3. Ort Corporation has provided the following data from its activity-based costing accounting system Indirect factory wages Factory equipment depreclation $ 605,000 348,000 Distribution of Resource Consumption across Activity Cost Pools Customer Orders Product Processing Other Activity Cost Pools Indirect factory wages Factory equipment depreclation 100% 100% 55% 20% 20% 60% 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 indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? O $220,850 O $605.000 $348,000

Explanation / Answer

The correct answer is $ 220,850

Note :

1. Overhead Cost 2. Other Cost Allocated (1.*2.) Indirect Factory Wages 605,000 25% 151,250 Factory Eqipment Depreciation 348,000 20% 69,600    Total Cost 220,850
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