Following activity rates from an activity-based costing system to assign overhead costs to products. How much overhead cost would be assigned to each of the two products using the company's activity-based costing system (Can you explain it to me when working the problem so that I actually understand it please. Thanks!
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Activity Cost Pools
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Activity Rate
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Setting up batches
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$34.47
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per batch
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Processing customer orders
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$66.77
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per customer order
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Assembling products
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$2.66
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per assembly hour
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Two products data:
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Product G32H
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Product U15Z
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Number of batches
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79
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48
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Number of customer orders
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36
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31
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Number of assembly hours
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487
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417
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