Umanzor Corporation uses activity-based costing to assign overhead costs to prod

Question

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $50,200; Supervising, $31,900; and Other, $25,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

20,200            

2,700            

What is the overhead cost assigned to Product S5 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $50,200; Supervising, $31,900; and Other, $25,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

Explanation / Answer

Hi,

Please find the answer as follows:

Processing Cost Assigned to Product S5 = 50200*19200/20200 = 47714.85

+

Supervising Cost Assigned to Product S5 = 31900*1650/2700 = 19494.44

Overhead Cost Assigned to Product S5 = 47714.85 + 19494.44 = 67209.29

Answer is 67209.29.

Thanks.

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