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3 years ago

Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Business

1 answer:

elena-s [515]3 years ago

8 0

Answer:

$5,593.44

Explanation:

The computation of the total overhead cost assigned to Product N79A using the activity based costing is shown below:

Total overhead cost assigned is

= Setting up batches cost + processing customer orders cost + assembly products cost

As we know that

Overhead Cost assigned = Activity Rate × Number of activity

So,

Setting up batches cost = $92.68 × 28 batches = $2,595.04

Processing customer orders cost = $95.08 × 6 customer orders = $570.48

And,

Assembling products cost = $3.41 × 712 assembly hours = $2,427.92

So,

Total overhead cost assigned to Product N79A is

= $2,595.04 + $570.48 + $2,427.92

= $5,593.44

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