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Lehner Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages $563,000 Factory equipment depreciation $337,000 Distribution of Resource Consumption

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

Indirect factory wages $563,000
Factory equipment depreciation $337,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools
Customer Orders Product Processing Other Total
Indirect factory wages 55% 30% 15% 100%
Factory equipment depreciation 25% 50% 25% 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?

Multiple Choice

  • $337,000

  • $563,000

  • $0

  • $168,700

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