Question
Lehner Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages...
| Lehner Corporation has provided the following data from its activity-based costing accounting system: |
| Indirect factory wages | $614,000 |
| Factory equipment depreciation | $350,000 |
| Distribution of Resource Consumption across Activity Cost Pools: |
| Activity Cost Pools |
| Customer Orders |
Product Processing |
Other | Total | |
| Indirect factory wages | 60% | 30% | 10% | 100% |
| Factory equipment depreciation | 45% | 50% | 5% | 100% |
|
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? |
Multiple Choice
-
$614,000
-
$350,000
-
$0
-
$78,900
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Answer #1
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