The following data have been provided by Hooey Corporation from its activity-bas

Question

The following data have been provided by Hooey Corporation from its activity-based costing accounting system Supervisory wages Factory utilities 64,000 $217,000 Distribution of Resource Consumption across Activity Cost Pools Product Changeovers Machining Activity Cost Pools Supervisory wages Factory utilities 63% 16% 29% 71% other 8% 13% Total 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. Required a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.

Explanation / Answer

a Supervisory wages 18560 =64000*29% Factory utilities 154070 =217000*71% b Supervisory wages 5120 =64000*8% Factory utilities 28210 =217000*13%

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