Ask Question
12 April, 01:20

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 How much overhead cost would be assigned to Product K91B using the activity-based costing system

+4
Answers (1)
  1. 12 April, 01:29
    0
    Product K91B = $10,743.82

    Explanation:

    Giving the following information:

    Activity Cost Pool Activity Rate

    Setting up batches $ 59.71 per batch

    Processing customer orders $ 73.05 per customer order

    Assembling products $ 4.40 per assembly hour

    Product K91B

    Number of batches 92

    Number of customer orders 42

    Number of assembly hours 496

    We were given the allocation rates, all we need to do is allocate based on actual allocation base:

    Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

    Product K91B = 59.71*92 + 73.05*42 + 4.4*496

    Product K91B = $10,743.82
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers