Question

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:Activity Cost Pools Activity RateProcessing customer orders $96.63 per customer orderAssembling products $2.45 per assembly hourSetting up batches $58.89 per batchLast year, Product F76D involved 9 customer orders, 436 assembly hours, and 26 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?a $1,615.70b $3,469.01c $68,377.85d $1,531.14

Answer 1

Answer:

The correct answer is B.

Explanation:

Giving the following information:

The company uses the activity rates to assign overhead costs to products:

Processing customer orders $96.63 per customer order

Assembling products $2.45 per assembly hour

Setting up batches $58.89 per batch

Last year, Product F76D involved 9 customer orders, 436 assembly hours, and 26 batches.

Allocated overhead= 9*96.63 + 436*2.45 + 26*58.89= $3,469.01