Question
Lehner Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $581,000 Factory equipment depreciation $277,000 Distribution of Resource Consumption
Lehner Corporation has provided the following data from its activity-based costing accounting system:
| Indirect factory wages | $581,000 |
| Factory equipment depreciation | $277,000 |
Distribution of Resource Consumption across Activity Cost Pools:
| Customer Orders | Product Processing | Other | Total | |
|---|---|---|---|---|
| Indirect factory wages | 50% | 35% | 15% | 100% |
| Factory equipment depreciation | 40% | 50% | 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?
A. $114,850
B. $0
C. $277,000
D. $581,000
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Quality Management Audits In Nuclear Medicine Practices
Authors: International Atomic Energy Agency (IAEA)
1st Edition
9201121083, 978-9201121080
