Question

Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Activity Cost Pools	Activity Rate
Setting up batches	$	169.55	per batch
Assembling products	$	3.58	per assembly hour
Processing customer orders	$	52.83	per customer order

Data concerning two products appear below:

	Product S96U	Product Q06F
Number of batches	40	46
Number of assembly hours	133	908
Number of customer orders	17	43

Required:

a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system?

b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system?

Answer 1

Answer

--Requirements, with calculations

Overhead cost assigned:	Product S96U	Product Q06F
Setting up batches	$6,782.00	$7,799.30
Assembling products	$476.14	$3,250.64
Processing customer orders	$898.11	$2,271.69
Total Overhead cost assingned	$8,156.25	$13,321.63
	Answer to Requirement [a]	Answer to Requirement [a]

--Calculation

Overhead cost assigned:	Product S96U	Product Q06F
Setting up batches	=40*169.55	=46*169.55
Assembling products	=133*3.58	=908*3.58
Processing customer orders	=17*52.83	=43*52.83