Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.Activity Cost PoolsActivity RateSetting up batches$98.54per batchProcessing customer orders$42.00per customer orderAssembling products$3.53per assembly hourData concerning two products appear below: Product K52WProduct X94TNumber of batches5573Number of customer orders917Number of assembly hours697402Required:How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?
What will be an ideal response?
The overhead cost charged to Product K52W is:
Activity Rate | Activity | ABC Cost | |||||
| Setting up batches | $ | 98.54 | per batch | 55 | batch | $ | 5,419.70 |
| Processing customer orders | $ | 42.00 | per customer order | 9 | customer orders | 378.00 | |
| Assembling products | $ | 3.53 | per assembly hour | 697 | assembly hour | 2,460.41 | |
| Total overhead cost | $ | 8,258.11 | |||||
Activity Rate | Activity | ABC Cost | |||||
| Setting up batches | $ | 98.54 | per batch | 73 | batch | $ | 7,193.42 |
| Processing customer orders | $ | 42.00 | per customer order | 17 | customer orders | 714.00 | |
| Assembling products | $ | 3.53 | per assembly hour | 402 | assembly hour | 1,419.06 | |
| Total overhead cost | $ | 9,326.48 | |||||
You might also like to view...
The process of generalizing the sample results to the population results is called statistical inference
Indicate whether the statement is true or false
Estimated liabilities commonly arise from all of the following except:
A. Pension benefits. B. Warranties. C. Vacation benefits. D. Employee benefits. E. Unearned revenues.
The basic difference between a vertical and horizontal fashion trend is based on fashion acceptance _____
a. for fads versus fashion items b. versus product deletion c. of staple versus innovative merchandise d. between social classes versus within a social class
Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?
a. Police Officer Paul is not entitled to the reward because past consideration is never valid consideration. b. Police Officer Paul is entitled to the reward because he puts his life on the line every day. c. Police Officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest. d. Police Officer Paul is not entitled to the reward but may have an argument under promissory estoppel.