Naples Corporation Has Provided the Following Data from Its Activity-Based

question 5

Multiple Choice

Naples Corporation has provided the following data from its activity-based costing accounting system: Distribution of resource consumption across activity cost pools: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

• A)$247,000
• B)$390,000
• C)$214,500
• D)$780,000
• E)$208,000

---

Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios.

Incremental Cost

The additional cost associated with producing one more unit of a product.

Step-Wise Cost

Costs that remain constant for a certain level of activity but jump to a higher amount once a threshold is crossed.

Fixed Cost

Overheads that stay stable no matter the production or sales figures, involving costs like property rent, employee salaries, and insurance policies.