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

question 17

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Ort Corporation has provided the following data from its activity-based costing accounting system: Ort 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 NOT be assigned to products using the activity-based costing system? A) $56, 000 B) $100, 000 C) $360, 000 D) $0 Distribution of Resource Consumption across Activity Cost Pools: Ort 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 NOT be assigned to products using the activity-based costing system? A) $56, 000 B) $100, 000 C) $360, 000 D) $0 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 NOT be assigned to products using the activity-based costing system?


Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including but not limited to utilities, maintenance, and salaries of support staff.

Traditional Costing System

is an accounting method that applies indirect costs to products based on a predetermined rate, often not reflecting actual usage of resources.

Direct Labor-Hours

The total hours of labor directly involved in producing goods or performing services.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the overhead costs per unit of activity.

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