Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
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Activity Cost Pools
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Activity Rate
|
| |
Assembling products.......................
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$8.90
|
per assembly hour
|
| |
Processing customer orders.............
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$31.23
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per customer order
|
| |
Setting up batches...........................
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$43.72
|
per batch
|
Data for one of the company’s products follow:
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|
Product U94W
|
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Number of assembly hours...............
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389
|
| |
Number of customer orders.............
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53
|
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Number of batches..........................
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61
|
How much overhead cost would be assigned to Product U94W using the activity-based costing system?
How much overhead cost would be assigned to Product U94W using the activity-based costing system?
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1.
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$42,176.55
|
|
2.
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$83.85
|
|
3.
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$7,784.21
|
|
4.
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$2,666.92
|