Question

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.56 per batch Processing customer orders $ 72.96 per customer order Assembling products $ 4.25 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 89 60 Number of customer orders 39 53 Number of assembly hours 493 900 How much overhead cost would be assigned to Product K91B using the activity-based costing system?

Answer 1

Answer:

$10,241.53

Explanation:

Using the activity-based costing system, Overhead cost for Product K91B would be?

Setting up batches 89 batches x $59.56=                   $5300.84

Processing customer orders 39 orders x $72.96=      $2,845.44

Assembling products 493 hours x $4.25=                   $2,095.25

Total Overhead cost                                                      $10,241.53