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 $ 94.25 per batch Processing customer orders $ 83.89 per customer order Assembling products $ 18.11 per assembly hour Data concerning two products appear below: Product V91Z Product V21I Number of batches 71 14 Number of customer orders 22 11 Number of assembly hours 494 699 How much overhead cost would be assigned to Product V91Z using the activity-based costing system?

Answer 1

Answer:

Total overhead            17.483,67‬

Explanation:

Product V91Z

The ovehead will be calcualte by multiplying the overhead rate per activity by the activity level of Product V91Z

Number of batches 71  x $94.25 per batch  +

Number of customer orders 22 x $83.89 per order +

Number of assembly hours 494 x $18.11 per assembly hour

from batches                6.691,75‬

from customer orders 1.845,58‬

from assembly hours  8.946,34‬  

Total overhead            17.483,67‬