1. Gould Corporation uses the following activity rates from its activity-based c
ID: 2333366 • Letter: 1
Question
1. Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Data concerning two products appear below:
How much overhead cost would be assigned to Product K91B using the activity-based costing system?
2. DelauderEnterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:
The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company’s products. The details of last year’s purchases of this product are listed below:
According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to:
3. Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:
Distribution of resource consumption:
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
Activity Cost Pool Activity Rate Setting up batches $ 59.06 per batch Processing customer orders $ 72.66 per customer order Assembling products $ 3.75 per assembly hourExplanation / Answer
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Product K91B Activity Rate Number of batches 84 59.06 4961.04 Number of customer orders 32 72.66 2325.12 Number of assembly hours 483 3.75 1811.25 Overhead cost assigned to Product K91B 9097.41Related Questions
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