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:

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

Lehner Corporation has provided the following data from its activity-based costing accounting system Indirect factory wages Factory equipment depreclation $583,000 $315,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Customer Product Orders Processing OtherTotal 10% 100% 5 100% 65% 45% Indirect factory wages 25% Factory equipment depreclation 50% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustalning 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? $898,000 O $488.200 O $520,700 O $663,700

Explanation / Answer

C. $520,700

Allocations to the Customer Orders activity cost pool:

Indirect factory wages (65% × $583,000) $378,950 Factory equipment depreciation (45% × $315,000) $141,750 Total $520,700

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