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In: Accounting

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 activity-based costing system? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $10,278.10

  • $53,134.08

  • $6,365.66

  • $131.52

Solutions

Expert Solution

Answer: $10,278.10

Explanation

Particulars Activity Rate Activity Units Total Cost
Assembling Products $                        4.26 266 $           1,133.16 per assembly hou
Processing Customer Orders $                      49.63 56 $           2,779.28 per customer order
Setting Up Batches $                      77.63 82 $           6,365.66 per batch
Total Overhead cost would be assigned to Product Q79P $       10,278.10

ekkarill92 answered 3 years ago
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