Question

Senff 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 $ 93.00 per batch Processing customer orders $ 82.83 per customer order Assembling products $ 17.26 per assembly hour Data concerning two products appear below: Product V91Z Product V21I Number of batches 69 12 Number of customer orders 20 9 Number of assembly hours 492 697 How much overhead cost would be assigned to Product V91Z using the activity-based costing system? (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer:

Total allocated overhead= $16,742.64

Explanation:

Giving the following information:

Activity Cost Pools Activity Rate

Setting up batches $ 93.00 per batch

Processing customer orders $ 82.83 per customer order

Assembling products $ 17.26 per assembly hour

Product V91Z

Number of batches 69

Number of customer orders 20

Number of assembly hours 492

To calculate the allocated overhead, we need to use the following formula:

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

Setting up= 93*69= 6,417

Processing= 82.83*20= 1,656.6

Assembling= 17.26*492= 8,669.04

Total allocated overhead= $16,742.64