Activity rates from Quattrone Corporation\'s activity-based costing system are l

Question

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Last year, Product F76D involved 4 customer orders, 451 assembly hours, and 28 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

$1,545.60

$3,398.91

$1,589.84

$68,307.75

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Explanation / Answer

Cost assigned to product F76D Processing Customer order 90.34*4 361.36 assembling 3.21*451 1447.71 Setting up batches 56.78*28 1589.84 Total 3398.91 The correct answer is $ 3398.91

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