Use the following to answer questions 46-47:
The following data have been provided by Letze Corporation from its activity-based costing accounting system:
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Factory supervision...........
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$460,000
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|
|
Indirect factory labor........
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$220,000
|
Distribution of Resource Consumption across Activity Cost Pools:
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|
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Activity Cost Pools
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|
|
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Batch Set-Up
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Expediting
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Other
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Total
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|
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Factory supervision............
|
55%
|
35%
|
10%
|
100%
|
|
|
Indirect factory labor.........
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60%
|
20%
|
20%
|
100%
|
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
1. How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?
A) $680,000
B) $385,000
C) $391,000
D) $340,000
2. How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system?
A) $220,000
B) $90,000
C) $0
D) $460,000