Question

Tomasini Corporation has provided the following data from its activity-based costing accounting system:

Supervisory wages	$	690,000
Factory supplies	$	290,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools	Batch Processing	Unit Processing		Other	Total
Supervisory wages	30%	60%		10%	100%
Factory supplies	40%	30%		30%	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?

Multiple Choice

• $156,000

• $690,000

• $290,000

• $0

Answer 1

Correct answer---------$156,000

Working

Total Cost assigned other costs
10% of Supervisory wages	$            69,000.00
30% of factory supplies	$            87,000.00
Total Cost assigned other costs	$         156,000.00

The cost assigned to other costs will be transferred to organization-sustaining costs that are not assigned to products