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ID: 2372901 • Letter: #
Question
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Lehner Corporation has provided the following data from its
activity-based costing accounting system:
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"http://www.mhhe.com/media_library/testbank/0078111005/chapter07/image071.png"
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Distribution of Resource Consumption across Activity Cost
Pools:
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Activity Cost Pools
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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.
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How much indirect factory wages and factory equipment depreciation
cost would be assigned to the Customer Orders activity cost
pool?
Explanation / Answer
Factory Supervision: $360000 x 51% =$183600
Indirect Factory Labor: $270000 x 56%=$151200
Total $334800
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