Activity rates from Quattrone Corporation\'s activity-based costing system are l

Question

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Last year, Product F76D involved 5 customer orders, 484 assembly hours, and 28 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

$1,434.35

$1,468.04

$68,196.50

$3,287.66

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Explanation / Answer

overhead cost would be assigned to Product F76D using the activity-based costing system=5 customer orders*$94.82+484 assembly hours*$2.78per assembly hour+ 28 batches*$52.43 per batch=$3,287.66.

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