Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity...

Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Activity Cost Pools	Activity Rate
Processing customer orders	$95.88	per customer order
Assembling products	$2.76	per assembly hour
Setting up batches	$53.30	per batch

Last year, Product F76D involved 3 customer orders, 496 assembly hours, and 27 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

Multiple Choice

$1,439.10
$3,095.70
$68,004.54
$1,242.39

Solutions

Expert Solution

Answer is $3,095.70 as calculated below:

Activity cost pools	Activity rate	Product F76D costing	Product F76D amount
Processing customer orders	95.88	3	$ 287.64
Assembling products	2.76	496	$ 1,368.96
Setting up batches	53.3	27	$ 1,439.10

Total cost to be assigned			$ 3,095.70

The other options are incorrect as they include only batches value.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

ABC Company uses a traditional costing system. Management is considering switching to an activity-based costing system....

ABC Company uses a traditional costing system. Management is considering switching to an activity-based costing system. What steps must Star take in initiating an activity-based costing system? Need unique answer

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Information is given as Activity Cost Pool; Amount; Activity RateSetting up batches; $59.06; per batchProcessing customer orders; $72.66; per customer orderAssembling products; $3.75; per assembly hourData concerning the two products is below:Product K91B:Number of batches = 84; number of customer orders = 32; number of assembly hours = 483Product F650:Number of batches = 50; number of customer orders = 43; number of assembly hours...

Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Assembling products $8.90 per assembly hour Processing customer orders $31.23 per customer order Setting up batches $43.72 per batch Data for one of the company's products follow: Product U94W Number of assembly hours 389 Number of customer orders 53 Number of batches 61 How much overhead cost would be assigned to Product U94W using the activity-based costing system?

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...

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...

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...

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...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 174,000 34,800 DLHs Purchase orders Number of orders $ 7,200 240 orders Parts management Number of part types $ 66,500 95 part types Board etching Number of boards $ 64,800 1,620 boards General factory Machine-hours $ 115,200...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 311,500 44,500 DLHs Purchase orders Number of orders $ 8,840 221 orders Parts management Number of part types $ 71,280 99 part types Board etching Number of boards $ 63,700 1,820 boards General factory Machine-hours $ 148,000...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 317,600 39,700 DLHs Purchase orders Number of orders $ 9,900 220 orders Parts management Number of part types $ 67,890 93 part types Board etching Number of boards $ 76,000 1,900 boards General factory Machine-hours $ 237,600...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 270,900 30,100 DLHs Purchase orders Number of orders $ 11,745 261 orders Parts management Number of part types $ 78,570 97 part types Board etching Number of boards $ 72,400 1,810 boards General factory Machine-hours $ 212,400...

Subjects