Question & Answer: Gould Corporation uses the following activity rates from its activity-based costing to assign…..

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activities Setting up batches Processing customer orders Assembling products Activity Rate I T$84.50 per batch I $75.57 per customer order I $10.71 per assembly hour I Data concerning two products appear below: Number of batches Number of customer orders Number of assembly hours Product v09x Product AO9X 70 13 I 21 1 0 | 493 698 I 21 How much overhead cost would be assigned to Product V09x using the activity-based costing system? O $170.78 O $127820.00 O $12782.00 O $5,915.00

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product V09X using the activity-based costing system? $170.78 $127, 820.00 $12, 782.00 $5, 915.00

Expert Answer

 

COMPUTATION OF OVERHEAD COST ASSIGNED TO PRODUCT VO9X:
Activity Activity Activity Units OH
rate assigned
Setting up batches $         84.50 70 $    5,915.00
Processing customer orders $         75.57 21 $    1,586.97
Assembling products $         10.71 493 $    5,280.03
$ 12,782.00
Answer: Total overhead cost assigned to Product VO9X $ 12,782.00
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