Question lehner corporation has provided the subsequent

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Reference no: EM13349722

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

Reference no: EM13349722

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