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Desilets 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.Required:a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Unit Processing activity cost pool.b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products.
Cost Method
An accounting method where investments are recorded at their acquisition cost without considering market value changes unless a permanent decline in value has occurred.
Amortization
The process of gradually writing off the initial cost of an intangible asset over a period.
Equity Method
An accounting technique used to record investments in other companies, where the investment is adjusted for the investor’s share of the investee’s profits and losses.
Equity Method Investments
Accounting for investments in other entities where the investor has significant influence over the investee but does not fully control or own it, typically between 20% and 50% ownership.
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