In: Accounting
Desilets Corporation has provided the following data from its activity-based costing accounting system:
Supervisory wages | $ | 83,600 |
Factory utilities | $ | 336,000 |
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools | Batch Set-Ups | Unit Processing | Other | Total | ||||
Supervisory wages | 64 | % | 34 | % | 2 | % | 100 | % |
Factory utilities | 34 | % | 59 | % | 7 | % | 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 supervisory wages and factory utilities costs that would be allocated to the Unit Processing activity cost pool.
Particulars | Total Cost | Basis of Allocation | Amount Allocated to Unit Processing Activity |
Supervisory Wages | 83,600 | 34% of Total cost | 28,424 |
Factory Utilities | 3,36,000 | 59% of Total Cost | 1,98,240 |
Total Amount | 2,26,664 |