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

---

Definitions:

Goods

Physical items that are produced or purchased for sale.

Services

Intangible products such as expertise, assistance, or access to resources provided by businesses or professionals.

Accounting Period

A specific time period for which financial records and statements are prepared for a business or organization.

One Quarter

A term referring to one-fourth of a year, used in financial and business contexts to divide the fiscal or calendar year into four periods for reporting purposes.