Umanzor Corporation uses activity-based costing to assign overhead costs to prod
ID: 2376132 • Letter: U
Question
Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $42,700; Supervising, $26,900; and Other, $17,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below
product s5 9,400
product f5 600
total 10,000
What is the overhead cost assigned to Product S5 under activity-based costing?
Explanation / Answer
overhead cost of processing=(42700/10000)*9400=40138
overhead cost of supervising=(26900/1000)*700=18830
total cost to product s5=58968
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