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Please show me how to solve this. Senff Corporation uses the following activity

ID: 2385845 • Letter: P

Question

Please show me how to solve this.

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_____________$38.50 per batch
Processing customer orders______$86.62 per customer order
Assembling products____________$7.33 per assembly hour

Data concerning two products appear below:

_______________________________Product A______Product B
Number of batches___________________83____________27
Number of customer orders___________74______________7
Number of assembly hours____________702____________321

Q: How much overhead cost would be assigned to Product A using the activity-based costing system?
Answer is $14,751.04

Explanation / Answer

overhead = rate * number = 83*38.5 + 74*86.62+702*7.33 = $14751.04

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