schmeider corporation uses the following activity for activity based costing Cor

Question

schmeider corporation uses the following activity for activity based costing Corporation uses the following activity rates from its to products Activity Cost Pools Activity Rate Setting up batches Processing customer orders $62.52 per batch $19.58 per customer order Data conceming two products appear below Product COOR Product AGIE Number of batches Number of customer orders Number of assembly 31 162 Required: How much overhead cost would be assigned to each of the two products using the companys ac based costing system?

Explanation / Answer

The overhead assigned to each product i.e Product COOR and Product A61E are :

Overhead to Product COOR :

for Setting up batches = $62.52 * 66 = $4126.32

for Processing Customer Orders = $19.58 * 46 = $900.68

for Assembling products = $8.71 * 419 = $3649.49

Total Overhead assigned to Product COOR = $4126.32 + $900.68 + $3649.49 = $8676.49

Overhead to Product A61E :

for Setting up batches = $62.52 * 53 = $3313.56

for Processing Customer Orders = $19.58 * 31 = $606.98

for Assembling products = $8.71 * 162 = $1411.02

Total Overhead assigned to Product A61E = $3313.56 + $606.98 + $1411.02 = $5331.56

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