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 $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 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

Total allocated costs= $10,743.82

Step-by-step explanation:

Giving the following information:

Activity Cost Pool Activity Rate

Setting up batches $ 59.71 per batch

Processing customer orders $ 73.05 per customer order

Assembling products $ 4.40 per assembly hour

Product K91B:

Number of batches 92

Number of customer orders 42

Number of assembly hours 496

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Setting up= 59.71*92= 5,493.32

Processing= 73.05*42= 3,068.1

Assembling= 4.40*496= 2,182.4

Total allocated costs= $10,743.82