Question

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches $ 84.00 per batch Processing customer orders $ 75.15 per customer order Assembling products $ 10.46 per assembly hour

Answer 1

Answer:

Product V91Z overhead: $12,614.93

Product V21I overhead:  $ 9,050.44

Missing Information:

                                    Product V91Z  Product V21I

Number of batches                70               13

Number of customer orders       21               10

Number of assembly hours     493             698

Question

Overhead per product using ABC method

Explanation:

We multiply the activity rate of each activity with the level for each product.

Then, we add all three cost together to get the total overhead per product.

Product V91Z

70 x $84 + 21 x $75.15 + 493 x $10.46 = $12,614.93

Product V21I

13 x $84 + 10 x $75.15 + 698 x $10.46 = $9,050.44