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 $102.35 per customer order Assembling products $2.65 per assembly hour Setting up batches $54.31 per batch Last year, Product F76D involved 4 customer orders, 495 assembly hours, and 25 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

Answer 1

Answer:

3,078.9

Explanation:

Given that,

customer orders $102.35 per customer order

Assembling products $2.65 per assembly hour

Setting up batches $54.31 per batch

Total cost:

= Customer order + Assembly hour + Batch

= [102.35 × 4] + [2.65 × 495] + [54.31 × 25]

= 409.4 + 1,311.75 + 1,357.75

= 3,078.9

Therefore, the overhead cost that would be assigned to Product F76D using the activity-based costing system is 3,078.9.