9) 9) Bennette Corporation has provided the following data concerning its overhe

Question

9) 9) Bennette Corporation has provided the following data concerning its overhead costs for the coming year S 340,000 120,000 Depreciation Rent 140,000 Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year 30,000 labor orders rder Not applicable The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Total 100% 100% 100% 30% The activity rate for the Order Processing activity cost pool is closest to: B) S430 per order D) $420 per order A) $360 per order C) S440 per order 10) Gould uses the following activity rates from its activity-based costing to 10) assign overhead costs to products: Setting up batches Processing customer orders Assembling products $59.06per batch $72.66per customer order $3.75per assembly hour Data concerning two products appear below: Product Product K91B F650 Number of batches Number of customer orders Number of assembly hours 84 32 483 43 How much overhead cost would be assigned to Product K91B using the activity-based costing system? A) $81,146.53 B) $9,097.41 C) $4,961.04 D) $135.47

Explanation / Answer

9) Assembly setting up other total Wages and salaries 136000 119000 85000 340000 Depreciation 18000 54000 48000 120000 rent 49000 42000 49000 140000 total 203000 215000 182000 600000 order processing cost Activity rate       215,000/500 430 per order option B is the answer 10) overhead cost assinged to product K91B setting up batches (59.06*84)= 4961.04 processing customer orders (72.66*32)= 2325.12 Assembling product (3.75*483) 1811.25 total overhead cost assigned 9097.41 option b Is the answer

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