Question

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Activity cost poolsActivity rateAssembling products $2.36 per assembly hourProcessing customer orders $47.73 per customer orderSetting up batches $75.73 per batchData for one of the company's products follow:Product Q79PNumber of assembly hours 247Number of customer orders 37Number of batches 63How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

Answer 1

Answer:

Explanation:

Particulars                     Activity Rate           Activity Units Total Cost

Assembling Products 2.36 Per assembly hour 247               582.92

Processing Customers 47.73 per customer order 37                   1,766 .01

Setting Up Cost          75.73 per batch                 63                        4,770.99

Total            7,119.92

Total cost allocated to product = 7120