Question

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Information is given as Activity Cost Pool; Amount; Activity Rate
Setting up batches; $59.06; per batch
Processing customer orders; $72.66; per customer order
Assembling products; $3.75; per assembly hour


Data concerning the two products is below:
Product K91B:
Number of batches = 84; number of customer orders = 32; number of assembly hours = 483


Product F650:
Number of batches = 50; number of customer orders = 43; number of assembly hours = 890


How much overhead cost would be assigned to Product K91B using the activity-based costing system?
$9,097.41
$81,146.53
$4,961.04
$135.47

Answer 1

How much overhead cost would be assigned to Product K91B using the activity-based costing system?

Setting up batches 84 batches x $59.06 $4,961.04
Processing customer orders 32 orders x $72.66 $2,325.12
Assembling products 483 hours x $3.75 $1,811.25
Total Overhead cost $9,097.41