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24 April, 04:37

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches $ 84.00 per batch Processing customer orders $ 75.15 per customer order Assembling products $ 10.46 per assembly hour

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Answers (1)
  1. 24 April, 08:19
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    Product V91Z overhead: $12,614.93

    Product V21I overhead: $ 9,050.44

    Missing Information:

    Product V91Z Product V21I

    Number of batches 70 13

    Number of customer orders 21 10

    Number of assembly hours 493 698

    Question

    Overhead per product using ABC method

    Explanation:

    We multiply the activity rate of each activity with the level for each product.

    Then, we add all three cost together to get the total overhead per product.

    Product V91Z

    70 x $84 + 21 x $75.15 + 493 x $10.46 = $12,614.93

    Product V21I

    13 x $84 + 10 x $75.15 + 698 x $10.46 = $9,050.44
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Home » Business » Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches $ 84.00 per batch Processing customer orders $ 75.
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