Lehner Corporation Has Provided the Following Data from Its Activity-Based

question 79

Multiple Choice

Lehner Corporation has provided the following data from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools 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?

• A)$260,000
• B)$520,000
• C)$0
• D)$104,000

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Definitions:

Revenue Variances

The difference between actual revenue and expected revenue over a specific period, often analyzed to understand performance.

Spending Variances

Differences between the actual amount spent on something and its budgeted (or planned) amount, often analyzed for cost control purposes.

Flexible Budget

A budget that adjusts or flexes with changes in volumes or activity levels, helping managers to better compare actual to budgeted performance.

Jeep Tours

Guided tours offered using jeep vehicles, often in rugged terrains or places of scenic beauty.