13. Wecker Corporation uses the following activity rates from its activity-based

Question

13. Wecker Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Cost Pools Activity Rate $79.50 per bach Setting up batches 7131 per customer onder 7.06 per assembly hour Processing customer orders Assembling products.. Data concerning two products appear below: Product A09X 12 Product VO9X Number of batches Number of customer orders Number of assembly hours 20 492 697 How much overhcad cost would be assigned to Product VO9X using the activity-based costing system A. $157.87 B. S91,722.47 C. S10,385.22 D. $5,485.50 Multiple choice the following information to answer the nest two questions Austad Corporation uses company has provided the following data concerning its activity-based costing sysiem activit costing to determine product costs for external financial reports. The Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Batch setup (setups) General factory (direct labor-hours) Total Cost S67.500 $273,700 S204,000 Activity Cost Pools Total Activity Product X 4,000 3,000 1,000 Product Y 1,000 4,000 7,000 Total 5,000 7,000 8,000 Machine related Batch setup General factory 14. A. $91.20 B. $68.40 C. $77.90 D. $39.10 The activity rate for the batch setup activity cost pool is closest to: 15, A. $272,600 B. S196,800 C.$234,000 D. $274,000 The total amount of overhead cost allocated to Product X would be closest to:

Explanation / Answer

13 Product V09X Batch setting 5485.5 =69*79.5 Customer orders 1426.2 =71.31*20 Assembling products 3473.52 =7.06*492 Total 10385.22 Option C is correct 14 Activity rate for batch set-up = 273700/7000= 39.1 Option D is correct 15 Activity Activity rates Machine related 13.5 =67500/5000 Batch setup 39.1 General factory 25.5 =204000/8000 Product X Machine related 54000 =4000*13.5 Batch setup 117300 =3000*39.1 General factory 25500 =1000*25.5 Total 196800 Option B is correct

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