Senff 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 $ 84.00 per batch Processing customer orders $ 75.15 per customer order Assembling products $ 10.46 per assembly hour

Question

Business

Amaya Stewart

30 November, 16:06

Senff 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 $ 84.00 per batch Processing customer orders $ 75.15 per customer order Assembling products $ 10.46 per assembly hour

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Answers (1)

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Roberts · Answer 1

Product V91Z overhead: $12,614.93

Product V21I overhead: $ 9,050.44

Missing Information:

Product V91Z Product V21I

Number of batches 70 13

Number of customer orders 21 10

Number of assembly hours 493 698

Question

Overhead per product using ABC method

Explanation:

We multiply the activity rate of each activity with the level for each product.

Then, we add all three cost together to get the total overhead per product.

Product V91Z

70 x $84 + 21 x $75.15 + 493 x $10.46 = $12,614.93

Product V21I

13 x $84 + 10 x $75.15 + 698 x $10.46 = $9,050.44