The following data have been provided by Letze Corporation from its activity-based costing accounting system: 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:  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 included in the "Other" activity cost pool. The total cost assigned to the "Other" activity cost pool is $310,000. Therefore, the factory supervision and indirect factory labor cost that would not be assigned to products using the activity-based costing system is $90,000 ($310,000 - $220,000). Option B is the correct answer.

The Following Data Have Been Provided by Letze Corporation from Its