Mouret Corporation uses the following activity rates from its activity-based cos

Question

Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Processing customer orders Assembling products Activity Rate $85.76 per batch $66.40 per customer order $ 1.98 per assembly hour Last year, Product N79A required 34 batches, 1 customer orders, and 369 assembly hours. Required: How much overhead cost would be assigned to Product N79A using the company's activity-based costing system? (Do not round your intermediate calculations. Round your final answer to two decimal places.) Total overhead cost

Explanation / Answer

Total Overhead Cost = ($ 85.76 Per batch * 34 batches) + ( $ 66.40 per customer order* 1 Order) + ( $ 1.98 per assembly hour * 369 assembly hours)

= $ 2,915.84 + $ 66.40+ $ 730.62

= $ 3,712.86

Hence, the correct answer is $ 3,712.86

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