Desilets Corporation has provided the following data from its activity-based cos

Question

Desilets 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.

Required:

a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Unit Processing activity cost pool.

b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.

Explanation / Answer

Answer to Part a)

Allocation to the unit processing activity cost pool:

Supervisory Wages ($86,200 *37%) = $31,894/-

Factory Utilities ($296,000 * 64%) = $189,440/-

Answer to Part b)

The cost allocated to the "Other" cost pool are not assigned to products.

Supervisory wages( $86,200 * 1%) = $862

Factory utilities ($296,000 * 4%) = $11,840

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