Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 87.25 per batch
Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
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 QO6F using the company's activity-based costing system?

Question

04-03-2021
Business

Answered

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Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 87.25 per batch
Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
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 QO6F using the company's activity-based costing system?

Sagot :

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