Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
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Question:
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pool | Activity Rate | |
---|---|---|
Setting up batches | $ 59.76 | per batch |
Processing customer orders | $ 73.08 | per customer order |
Assembling products | $ 4.45 | per assembly hour |
Data concerning two products appear below:
Product K91B | Product F65O | |
---|---|---|
Number of batches | 93 | 64 |
Number of customer orders | 43 | 57 |
Number of assembly hours | 497 | 904 |
How much overhead cost would be assigned to Product K91B using the activity-based costing system?
$137.29
$10,911.77
$98,205.93
$5,557.68
Related Book For
Managerial Accounting
ISBN: 978-1260482935
7th edition
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
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