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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 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.)

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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

ekkarill92 answered 3 years ago
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