Beckley Corporation has provided the following data from its activity-based costing accounting system:?Indirect factory wages$16,000?Factory equipment depreciation$193,000Distribution of Resource Consumption across Activity Cost Pools:?Activity Cost PoolsCustomer OrdersProduct ProcessingOtherTotal?Indirect factory wages48%47%5%100%?Factory equipment depreciation61%25%14%100%The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.Required:a. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool. Show your work!b. Determine the total amount of indirect factory wages and factory equipment
depreciation costs that would NOT be assigned to products. Show your work!
What will be an ideal response?
a. Allocations to the Product Processing activity cost pool:
| ? | Indirect factory wages (47% × $16,000) | $7,520 |
| ? | Factory equipment depreciation (25% × $193,000) | 48,250 |
| ? | Total | $55,770 |
b. As stated in the problem, the costs allocated to the "Other" cost pool are not assigned to products.
| ? | Indirect factory wages (5% × $16,000) | $800 |
| ? | Factory equipment depreciation (14% × $193,000) | 27,020 |
| ? | Total | $27,820 |
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