Question: Lehner Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $600,000 Factory equipment depreciation $278,500 Distribution of Resource Consumption
| Lehner Corporation has provided the following data from its activity-based costing accounting system: |
| Indirect factory wages | $600,000 |
| Factory equipment depreciation | $278,500 |
| Distribution of Resource Consumption across Activity Cost Pools: |
| Activity Cost Pools |
| Customer Orders | Product Processing | Other | Total | |
| Indirect factory wages | 45% | 40% | 15% | 100% |
| Factory equipment depreciation | 35% | 55% | 10% | 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? |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
