Naples 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.How much indirect factory wages and factory equipment depreciation cost would be assigned to the Product Processing activity cost pool?
A)$260,000
B)$429,000
C)$169,000
D)$780,000
E)$351,000

Question

Naples 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.How much indirect factory wages and factory equipment depreciation cost would be assigned to the Product Processing activity cost pool?
A)$260,000 
B)$429,000 
C)$169,000 
D)$780,000 
E)$351,000

Quizplus · Accepted Answer

The total amount of indirect factory wages and factory equipment depreciation cost is $689,000 ($348,000 + $341,000). 
The percentage of resource consumption for the Product Processing activity cost pool is 62%.
Therefore, the amount of indirect factory wages and factory equipment depreciation cost assigned to the Product Processing activity cost pool would be:

$689,000 x 62% = $429,000

The correct answer is B.

Naples Corporation Has Provided the Following Data from Its Activity-Based