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, $52,100; Supervising, $30,100; and Other, $18,600. 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:

18,300            

1,780            

What is the overhead cost assigned to Product S5 under activity-based costing?

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, $52,100; Supervising, $30,100; and Other, $18,600. 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

computation of cost per activity driver activity processing supervision overhead allocated 52100 30100 machine hours/batches 18300 1780 cost per driver 2.85 16.91 the overhead cost assigned to Product S5 under activity-based costing activity no.of drivers cost per driver total processing 17400 2.85 49537.70 supervision 750 16.91 12682.58 Total 62220.29

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