Weldon Corporation has provided the following data from its activity-based costi

Question

Weldon Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation $340,000 $240,000 Distribution of Resource Consumption across Activity Cost Pools: Customer Product Activity Cost Pools Indirect factory wages Factory equipment depreciation Orders Processing Other 65% 40 258 40% 10% 20% ota 1008 1008 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? Multiple Choice $188,500 $181,000 Prex sof 25 lll Next

Explanation / Answer

SOLUTION

Cost assigned to Customer orders activity cost pool = $181,000

Amount ($) Customer Orders Cost:   Indirect factory wages: (25% * $340,000) 85,000   Factory equipment depreciation: (40% * $240,000) 96,000 Total 181,000

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