Question

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 K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)

Answer 1

Overhead cost to be assigned to Product K91B:
Activity Cost pool	Activity Rate (A)	Estimated use of cost drivers (B)	Estimated use of cost drivers (A x B)
Setting up batches	$59.31 per batch	84 batches	4,982.04
Processing customer orders	$72.81 per customer order	34 customer orders	2,475.54
Assembling products	$4 per assembly hour	488 assembly hours	1,952.00
		Total overhead cost assigned to Product K91B	9,409.58