How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system?
A)$0
B)$62,000
C)$160,000
D)$300,000

Question

Quizplus · Accepted Answer

Factory supervision and indirect factory labor costs are assigned to products based on the activities that are performed to produce the products. If an activity is not performed to produce a product, then the cost of that activity will not be assigned to that product. In this case, the activity-based costing system would not assign the cost of factory supervision and indirect factory labor to products that are not produced. Therefore, the correct answer is B) $62,000.

How Much Factory Supervision and Indirect Factory Labor Cost Would