The following data have been provided by Letze Corporation 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.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

Question

The following data have been provided by Letze Corporation 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.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

Quizplus · Accepted Answer

According to the given data, the factory supervision and indirect factory labor costs are part of the "Other" activity cost pool, which consists of idle capacity and organization-sustaining costs that are not assigned to products. Therefore, the cost of factory supervision and indirect factory labor that would not be assigned to products is equal to the cost of the "Other" activity cost pool, which is $90,000. Therefore, option B is the correct answer.

The Following Data Have Been Provided by Letze Corporation from Its