Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activity Cost Pools Activity Rate Assembling products $8.90 per assembly hour

Processing customer orders $31.23 per customer order

Setting up batches $43.72 per batch

Data for one of the company's products follow:

Product U94W

Number of assembly hours 389

Number of customer orders 53

Number of batches 61

How much overhead cost would be assigned to Product U94W using the activity-based costing system?

Solutions

Expert Solution

Overhead cost should be sum total of all the costs based on their activity

Assembling cost = $8.9 per hour * 389 hours = 3462

Processing Customer Order = 31.23 per order * 53 orders = 1655.19

Setting up cost = 43.72 per batch * 61 batches= 2666.92

Total cost allocated to U94W = 3462+1655 + 2666.92 = 7784.11

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Information is given as Activity Cost Pool; Amount; Activity RateSetting up batches; $59.06; per batchProcessing customer orders; $72.66; per customer orderAssembling products; $3.75; per assembly hourData concerning the two products is below:Product K91B:Number of batches = 84; number of customer orders = 32; number of assembly hours = 483Product F650:Number of batches = 50; number of customer orders = 43; number of assembly hours...

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

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 $ 59.31 per batch Processing customer orders $ 72.81 per customer order Assembling products $ 4.00 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 84 55 Number of customer orders 34 48 Number of assembly hours 488 895 How much overhead cost would be assigned to Product...

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Assembling products $ 4.26 per assembly hour Processing customer orders $ 49.63 per customer order Setting up batches $ 77.63 per batch Data for one of the company's products follow: Product Q79P Number of assembly hours’ 266 Number of customer orders 56 Number of batches 82 How much overhead cost would be assigned to Product Q79P using the...

Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 69.22 per batch Processing customer orders $ 26.28 per customer order Assembling products $ 12.11 per assembly hour Data concerning two products appear below: Product K52W Product X94T Number of batches 65 52 Number of customer orders 45 30 Number of assembly hours 418 161 How much overhead cost would be assigned to each...

40. Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs...

40. Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $ 68.12 per batch Processing customer orders $ 25.18 per customer order Assembling products $ 11.51 per assembly hour Data concerning two products appear below: Product K52W Product X94T Number of batches 66 53 Number of customer orders 46 31 Number of assembly hours 419 162 Required: How much overhead cost would be assigned...

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the...

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 47,000 Supervisory expense $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.10 0.30 Supervisory expense 0.60 0.20 0.20...

Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been...

Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $46,700; Supervising, $33,600; and Other, $24,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Processing) Batches (Supervising) Product O6 18,400 1,250 Product...

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been...

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $50,500; Supervising, $28,600; and Other, $24,700. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Processing) Batches (supervising) Product S5 10,900 1,420 Product...

ECO Plc Ltd. uses an activity based costing system to assign overhead costs to products. In...

ECO Plc Ltd. uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Electricity expense and Water expense - are allocated to three activity cost pools - Grinding, Painting, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Electricity expense: $195,000 Water expense: $185,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Grinding Painting Other Electricity expense 0.40...

An activity based costing system is being considered at Evelia, nv to assign products overhead costs;...

An activity based costing system is being considered at Evelia, nv to assign products overhead costs; these overhead costs are currently assigned strictly by number of units produced. First, the two overhead costs of Rent expense and Insurance expense would be allocated to three activity cost pools - Finishing, Sanding, and Other - based on resource consumption. The information used to perform these allocations is below: Overhead Costs: Rent expense: $2,000,000 Insurance expense: $1,650,000 Distribution of Resource Consumption across Activity...

Subjects