Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pools Activity Rate Assembling products $8.90 per assembly hour
Processing customer orders $31.23 per customer order
Setting up batches $43.72 per batch
Data for one of the company's products follow:
Product U94W
Number of assembly hours 389
Number of customer orders 53
Number of batches 61
How much overhead cost would be assigned to Product U94W using the activity-based costing system?
Overhead cost should be sum total of all the costs based on their activity
Assembling cost = $8.9 per hour * 389 hours = 3462
Processing Customer Order = 31.23 per order * 53 orders = 1655.19
Setting up cost = 43.72 per batch * 61 batches= 2666.92
Total cost allocated to U94W = 3462+1655 + 2666.92 = 7784.11
Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...