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30 October, 05:36

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $102.35 per customer order Assembling products $2.65 per assembly hour Setting up batches $54.31 per batch Last year, Product F76D involved 4 customer orders, 495 assembly hours, and 25 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

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  1. 30 October, 06:09
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    3,078.9

    Explanation:

    Given that,

    customer orders $102.35 per customer order

    Assembling products $2.65 per assembly hour

    Setting up batches $54.31 per batch

    Total cost:

    = Customer order + Assembly hour + Batch

    = [102.35 * 4] + [2.65 * 495] + [54.31 * 25]

    = 409.4 + 1,311.75 + 1,357.75

    = 3,078.9

    Therefore, the overhead cost that would be assigned to Product F76D using the activity-based costing system is 3,078.9.
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