Lehner corporation has provided the following data from its, Ask an Expert

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

Indirect factory wages $615,000

Factory equipment depreciation $321,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

Customer

Orders Product

Processing Other Total

Indirect factory wages 55% 20% 25% 100%

Factory equipment depreciation 10% 55% 35% 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 be assigned to the Customer Orders activity cost pool?

A. $337,850

B. $513,350

C. $936,000

D. $370,350

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Managerial Accounting, Accounting

Category:- Managerial Accounting
Reference No.:- M9469420

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