Sorice Corporation uses activity-based costing to assign overhead costs to produ

Question

Sorice 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. $20,200, Supervising, $11,000, and Other, $66,800. 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 MHs Batches (Processing) (Supervising) Product I9 Product W7 Total 4,800 200 15,200 20,000 800 1,000 What is the overhead cost assigned to Product W7 under activity-based costing? Multiple Choice TOSHIBA

Explanation / Answer

Overhead cost assigned to product W7 under activity based costing                 24,152.00 Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Particulars Amount a Activity Driver No of Activity b Cost per activity c= a/b No of Activity of W7 d Cost Allocated to Rims c*d Processing                 20,200.00 Machine hours                 20,000.00                           1.01                15,200.00          15,352.00 Supervising                 11,000.00 Batches                   1,000.00                         11.00                      800.00            8,800.00 Total Overhead                 31,200.00          24,152.00

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