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 Rate Processing customer orders $96.72 per customer order Assembling products $3.43 per assembly hour Setting up batches $53.23 per batch Last year, Product F76D involved 5 customer orders, 528 assembly hours, and 22 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system

Answer 1

Answer:

Total allocated overhead= $3,465.71

Explanation:

Giving the following information:

Processing customer orders $96.72 per customer order

Assembling products $3.43 per assembly hour

Setting up batches $53.23 per batch

Product F76D:

5 customer orders

528 assembly hours

22 batches

To assign overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product F76D:

Processing= 96.72*5= $483.6

Assembling= 3.43*528= 1,811.04

Setting up batches= 53.23*22= 1.171.07

Total allocated overhead= $3,465.71