Lehner Corporation has provided the following data from its activity-based costi

Question

Lehner Corporation has provided the following data from its activity-based costing accounting system:

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 be assigned to the Customer Orders activity cost pool?

1. $898,000

2. $663,700

3. $520,700

4. $488,200

Lehner Corporation has provided the following data from its activity-based costing accounting system:

Distribution of Resource Consumption across Activity Cost Pools:

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 be assigned to the Customer Orders activity cost pool?

1. $898,000

2. $663,700

3. $520,700

4. $488,200

Indirect factory wages Factory equipment depreciation $583,000 $315,000

Explanation / Answer

Customer Orders activity cost pool Indirect factory wages 583000*65% $     378,950.00 Factory equipment depreciation 315000*45% $     141,750.00 Total $     520,700.00

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