Wecker Corporation uses the following activity rates from it\'s activity-based c

Question

Wecker Corporation uses the following activity rates from it's activity-based costing to assign overhead costs to products: ACTIVITY COST POOLS--Setting up batches......$79.50 per batch; Processing customer orders......$71.31 per customer order; Assembling products.......$7.06 per assembly hr. DATA CONCERNING TWO PRODUCTS ARE BELOW: PRODUCT V09X..........# of batches......69----# of customer orders........20-----# of assembly hrs...........492.....and PRODUCT A09X.........# of batches.........12--------# of customer orders.........9-------# of assembly hrs..........697. How much overhead cost wood be assigned to product V09X using the activity-based costing system? Explain Please.

Explanation / Answer

PRODUCT V09X
# of batches......69
# of customer orders........20
# of assembly hrs...........492

Setting up batches: 79.5 / batch x 69 = $5485.50

Processing customer orders: 71.31 x 20 = $1426.20

Assembling products: 7.06 x 492 = $3473.52

Total cost: $10385.22

Hope this helps!

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