Naples Corporation Has Provided the Following Data from Its Activity-Based $\begin{array}{lrl}\text { Indirect factory wages } & \$ 520,000 \\\text { Factory equipment depreciation } & \$ 260,000\end{array}$

question 7

Multiple Choice

Naples Corporation has provided the following data from its activity-based costing accounting system: $\begin{array}{lrl}\text { Indirect factory wages } & \$ 520,000 \\\text { Factory equipment depreciation } & \$ 260,000\end{array}$

$\begin{array}{llr}\text {Activity Cost Pools}&\text {Activity Rate}\\\text { Processing customer orders } & \$ 92.86 \text { per customer order } \\\text { Assembling products } & \$ 1.78 \text { per assembly hour } \\\text { Setting up batches } & \$ 52.09 \text { per batch }\end{array}$


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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 Product Processing activity cost pool?

• A) $780,000
• B) $260,000
• C) $169,000
• D) $351,000
• E) $429,000

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Definitions:

Intangible Assets

Non-physical assets owned by a business that could include intellectual property rights, brand recognition, and patents.

Trademarks

Symbols, names, phrases, logos, or combinations thereof, legally registered or established by use as representing a company or product.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net assets, representing the value of the brand, customer base, and other non-physical assets.

Research And Development

Activities related to the innovation and improvement of products and processes.