9:25 PM Luz Ma File 1.2 html or, Help Save & Exit Submit Chapter 7 Quiz Gould Co
ID: 2540484 • Letter: 9
Question
9:25 PM Luz Ma File 1.2 html or, Help Save & Exit Submit Chapter 7 Quiz Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products 4 Processing customer orders Assembling pr $72.72 per customer order $ 3.85 per assembly houz Gama) Data concerning two products appear below Product Product Number of batches Number of customer orders Number of assembly hours x91B 81 31 485 F650 52 45 892 How much overhead cost would be assigned to Product K918 using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.) Multiple ChoiceExplanation / Answer
Solution: $8,913.53
Working:
A B A*B
Activity cost pool Activity rate Total activity ABC cost
Setting up batches 59.16 81 4791.96
Processing customer orders 72.72 31 2254.32
Assembling products 3.85 485 1867.25
8913.53
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