Lehner corporation has provided the following 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 product
orders processing 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 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?

$104,000

Explanation:

For Factory wages,

10% is not assigned to products.

For Factory Equipment Depreciation,

20% is not assigned to product.

The amount of indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system is as follows:

= (Indirect factory wages × 10%) + (Factory equipment depreciation × 20%)

= ($520,000 × 0.10) + ($260,000 × 0.20)

= $52,000 + $52,000

= $104,000

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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