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Question :
Lehner Corporation has provided the subsequent data from its activity-based costing accounting system:
Indirect factory wages $520,000
Factory equipment depreciation $260,000
Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools
Customer Orders Production Procesing Other Total
Indirect factory wages 40% 50% 10% 100%
Factory equipment depreciation 15% 65% 20% 100%
The "Other" activity cost pool consists of the costs of organization-sustaining and idle capacity costs that are not assigned to products.
Required:
How much indirect factory wages and factory equipment depreciation cost could be assigned to the Customer Orders activity cost pool?
A.
$247,000
b.$390,000
c. $214,500
d. $780,000
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