Question

Villeda Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Rate 23.58 per customer order Activity Cost Pools Setting up batches Processing customer orders Assembling products $66.52 per batch $10.71 per assembly hour Data concerning two products appear below Product G32H Product U15Z Number of batches Number of customer orders Number of assembly hours 65 45 52 30 161 41 Required How much overhead cost would be assigned to each of the two products using the companys activity-based costing system? (Do not round your intermediate calculations. Round your final answer to two decimal places.) Product G32H Product U15Z Total overhead cost

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Answer #1

The correct answer is :

Product G32H Product U15Z
Total Overhead Cost 9,861.68 5,890.75

Notes :

1.

Product G32H
Activity Activity Rate Activity Allocated Overhead ( Activity Rate * Activity)
Setting Up Batches 66.52 65 Batches 4,323.80
Processing 23.58 45 Orders 1,061.10
Assembling 10.71 418 Hours 4,476.78
Total Overhead Cost 9,861.68
Product U152Z
Activity Activity Rate Activity Allocated Overhead ( Activity Rate * Activity)
Setting Up Batches 66.52 52 Batches 3,459.04
Processing 23.58 30 Orders 707.40
Assembling 10.71 161 Hours 1,724.31
Total Overhead Cost 5,890.75
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