The Other activity cost pool consists of the costs of idle c

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?

$544,300

$858,000

$368,800

$401,300

Solution

$401,300 would be assigned to the Customer Orders activity cost pool of indirect factory wages and factory equipment depreciation cost.

Allocation to \"Customer Orders activity cost pool\" :

Total cost Activity Cost Pools    Activity cost

Indirect factory wages $581,000 50% 290500

Factory equipment depreciation $277,000 40%   110800

   $401300