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 | Other | Total | |
Indirect factory wages | 55% | 20% | 25% | 100% |
Factory equipment depreciation | 20% | 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 | |
$402,350 | |
$953,000 | |
$369,850 |
Allocations to the Customer Orders activity cost pool: |
Indirect factory wages (55% × $605,000) | $332,750 |
Factory equipment depreciation (20% × $348,000) | $69,600 |
Total |
$402,350
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