In: Accounting
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 to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
Answer | |||||
Calculation of overhead cost assigned to products using the Company’s activity based costing system | |||||
Product K52W | Product X94T | ||||
Setting up cost [$68.12 per batch] | $ 4,496 | $ 3,610 | |||
68.12*66 | 68.12*53 | ||||
Order processing cost [$25.18 per order] | $ 1,158 | $ 781 | |||
25.18*46 | 25.18*31 | ||||
Assembling cost [$11.51 per hour] | $ 4,823 | $ 1,865 | |||
11.51*419 | 11.51*162 | ||||
Total Overhead cost | $ 10,477 | $ 6,256 | |||