(- ? ? ? ? urw/ https://newoonnect Exam 2, Chapters 5, 7,8, 90 Help Save & Exit

ID: 2508550 • Letter: #

Question

(- ? ? ? ? urw/ https://newoonnect Exam 2, Chapters 5, 7,8, 90 Help Save & Exit Sulbmh Hane Corporation uses the following activity rates from Its activity-based costing to assign overhead costs to products: 9 Assembling products Processing customer orders Setting up batches S 8.90 per assembly hour $31.23 per customer order $43.72 per batch points 015028 Data for one of the company's products follow 094 Number of assembly hours Number of customer orders Number of batches 389 53 61 How much overhead cost would be assigned to Product U94W using the activity-based costing system? Multiple Choice

Explanation / Answer

Solution:

Assignment of Overhead to Product U94W

Cost Pool

Activity Rate (A)

Actual Usage by Product U94W (B)

Overhead Assigned (A*B)

Assembly Products

$8.90

per assembly hour

389

Assembly hour

$3,462.10

Processing customer orders

$31.23

per order

orders

$1,655.19

Setting up batches

$43.72

per batch

batches

$2,666.92

Total

$7,784.21

Total Assigned Overhead = $7,784.21

Hence, the correct option is $7,784.21

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you