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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 of the two products using the company's activity-based costing system?

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Expert Solution

Statement showing computations
Particulars Activity Rate Activity of K52W Cost Allocated to K52W Activity of X94T Cost Allocated to X94T
Setting up batches                        69.22                      65.00                    4,499.30                      52.00               3,599.44
Processing customer orders                      26.28                      45.00                    1,182.60                      30.00                   788.40
Assembling products                      12.11                    418.00                    5,061.98                    161.00               1,949.71
Overhead cost allocated                 10,743.88               6,337.55

jeff jeffy answered 1 year ago
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