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10 March, 10:59

Tomasini Corporation has provided the following data from its activity-based costing accounting system: Supervisory wages $ 670,000 Factory supplies $ 270,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Batch Processing Unit Processing Other Total Supervisory wages 20% 60% 20% 100% Factory supplies 45% 35% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system

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  1. 10 March, 14:42
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    134,000 dollar paid to supervisors will not be applied to products according to ABC

    Explanation:

    Activity Cost Pools:

    Batch Processing / /Unit Processing/ / Other / /Total

    Supervisory wages 20% 60% 20% 100%

    Factory supplies 45% 35% 20% 100% The "Other"

    20% f the Supervisory wages are traced to "other" therefore, not applied to products.

    total supervisory wages x other weight = other supervisor cost

    670,000 x 20% = 134,000
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