Maxim Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.Activity Cost PoolsActivity RateBatch Setup$74.76per batchProcessing customer orders$55.40per customer orderAssembling products$1.36per assembly hourLast year, Product P involved 33 batches, 1 customer order, and 368 assembly hours.Required:How much overhead cost would be assigned to Product P using the company's activity-based costing system? Show your work.
What will be an ideal response?
| Batch Setup (33 batches × $74.76 per batch) | $ | 2,467.08 | |
| Processing customer orders (1 customer order × $55.40 per customer order) | 55.40 | ||
| Assembling products (368 assembly hours × $1.36 per assembly hour) | 500.48 | ||
| Total overhead cost | $ | 3,022.96 |
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