Hane Corporation uses the following activity rates from its activity based costi

Question

Hane Corporation uses the following activity rates from its activity based costing to assign overhead costs to products Activity Rate Activity Cost Pools Assembling products Processing customer orders Setting up batches $8.90 per assembly hour $31.23 per customer order $43.72 per batch Data for one of the company's products follow Number of assembly hours Number of customer orders Number of batches Product U94W 389 53 61 How much overhead cost would be assigned to Product U94W using the activity-based costing system? O $4217655 O $8385 O $778421 O $266692

Explanation / Answer

overhead assigned Assembling products 8.90*389 = 3462.1 processing customer orders 31.23*53 = 1655.19 setting up batches 43.72*61 = 2666.92 overhead assigned 7784.21 answer

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