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Naples Corporation Has Provided the Following Data from Its Activity-Based  Indirect factory wages $520,000 Factory equipment depreciation $260,000\begin{array}{lrl}\text { Indirect factory wages } & \$ 520,000 \\\text { Factory equipment depreciation } & \$ 260,000\end{array}

Question 48

Multiple Choice

Naples Corporation has provided the following data from its activity-based costing accounting system:  Indirect factory wages $520,000 Factory equipment depreciation $260,000\begin{array}{lrl}\text { Indirect factory wages } & \$ 520,000 \\\text { Factory equipment depreciation } & \$ 260,000\end{array}

Activity Cost PoolsActivity Rate Processing customer orders $92.86 per customer order  Assembling products $1.78 per assembly hour  Setting up batches $52.09 per batch \begin{array}{llr}\text {Activity Cost Pools}&\text {Activity Rate}\\\text { Processing customer orders } & \$ 92.86 \text { per customer order } \\\text { Assembling products } & \$ 1.78 \text { per assembly hour } \\\text { Setting up batches } & \$ 52.09 \text { per batch }\end{array}


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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?


A) $214,500
B) $247,000
C) $208,000
D) $780,000
E) $390,000

Correct Answer:

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