Business, 28.02.2020 05:17 gonzalesalexiaouv1bg

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?
a. $9,097.41
b. $81,146.53
c. $4,961.04
d. $135.47

Answers: 3

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