Homework Answers
| a. | Total overhead cost [Refer working note] | $4,837.16 |
| b. | Total overhead cost [Refer working note] | $11,564.53 |
.
.
| Working note - Allocation of overhead cost | ||||||||
| Activity | Activity Rate | Product S96U | Product Q06F | |||||
| Activity usage | Allocation of activity cost | Activity usage | Allocation of activity cost | |||||
| (a) | (b) | (a x b) | (c) | (a x c) | ||||
| Setting up batches | $88.50 | per batch | 35 | batches | $3,097.50 | 46 | batches | $4,071.00 |
| Assembly products | $7.13 | per assembly hour | 106 | assembly hours | $755.78 | 821 | assembly hours | $5,853.73 |
| Processing customer orders | $54.66 | per customer order | 18 | customer orders | $983.88 | 30 | customer orders | $1,639.80 |
| Total overhead assigned | $4,837.16 | $11,564.53 | ||||||
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