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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
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$337,000
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$563,000
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$0
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$168,700
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