arlais 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 $ 83.25 per batch Assembling products $ 13.88 per assembly hour Processing customer orders $ 61.41 per customer order Data concerning
arlais 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 $ 83.25 per batch Assembling products $ 13.88 per assembly hour Processing customer orders $ 61.41 per customer order Data concerning
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...
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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 | $ 83.25 | per batch |
Assembling products | $ 13.88 | per assembly hour |
Processing customer orders | $ 61.41 | per customer order |
Data concerning two products appear below:
Product S96U | Product Q06F | |
---|---|---|
Number of batches | 33 | 45 |
Number of assembly hours | 104 | 844 |
Number of customer orders | 16 | 33 |
Required:
a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)
b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)
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