Saturday, April 11, 2015

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

  Indirect factory wages$605,000  
  Factory equipment depreciation$348,000  

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

 Customer
Orders
Product
Processing
OtherTotal
  Indirect factory wages55%      20%      25%  100%  
  Factory equipment depreciation20%      60%      20%  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?
$545,350
correct$402,350
$953,000
$369,850

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